South Forest Hill Residences.Canadian men can’t sell their houses! A man from Barrie, Ontario, Canada, planned to sell his two-story town house, but few people came to see the house after being listed for a long time.Please Visit: South Forest Hill Residences to Get Your VVIP Registration Today!
He had no choice but to reduce the price. For the future direction of the housing market, many economists predict that housing prices will have the biggest decline in nearly 40 years, and house prices may even fall by 20%.
Justin Beaudoin bought a two-story town house in July 2020. In the near future, he wants to sell the house and use the money to Peterborough for a bigger house. But after he put the house on the market in early June, few people came to see the house, and now he hasn’t even received an offer. He believes that the increase in interest rates by the central bank has made it difficult to sell houses.
“every time the central bank announces an increase in interest rates, I get hit because the higher the interest rate, the longer I have to wait before I can sell the house,” Beaudoin said.
Since the real estate market peaked in March, house prices across the country have fallen 3.3%, and prices in some cities in Ontario have fallen by 10% to 15%.
When interest rates rise, the housing market usually cools. But interest rates have recently risen at the fastest pace since 1998, so many economists predict that the real estate market will also experience the biggest shock in Canada’s recent history.
Most economists point out that they expect house prices to fall by at least 10 per cent between the second half of 2022 and the first half of 2023, but economists at BMO bank expect them to fall by as much as 20 per cent by 2023.
Doug Porter, a senior economist at BMO, also predicts that national home sales will fall by 23% by the end of 2022, with the biggest declines in Ontario and BC provincial capitals.
Other big banks have made similar predictions. Beata Caranci, chief economist at TD Bank, said the bank expects house prices to fall 19% by the end of the year from their peak in March. She also expects home sales to fall by 33%, but will start to rebound by mid-2023.
CIBC Bank expects house prices to fall by 15 per cent by the end of the year. “when the central bank raises interest rates, it aims to slow economic growth and suppress the interest rate-sensitive part of economic activity, and housing is one of the most affected,” said Avery Shenfeld, a senior economist.
RBC Bank also released a report last week in which economist Robert Hogue compared the extent of the four recessions in the Canadian housing market and expects home sales to fall by 42% by mid-2023, which is larger than the other four recessions.
In terms of house prices, Hogue expects the national average house price to fall by at least 12%.
But despite the current recession, most economists expect the housing market to start rebounding in 2023.
Hogue predicts that prices will gradually pick up again as housing is still scarce, demand rebounds and the number of immigrants increases next year.
“We expect this property market adjustment to end sometime in the first half of 2023, and the adjustment period will last about a year.”