South forest hill residences.The average house price in Canada fell to 610000. Canadian bank group Desjardins, one of the world’s top financial institutions, released the latest real estate forecast data.Please Visit: South forest hill residences to Get Your VVIP Registration Today!
Desjardins predicts that the Canadian housing market will see a sharp correction by the end of 2023, with average house prices falling nearly 25 per cent from their peak in February to nearly C $610000.
“the Canadian real estate market is correcting quickly and faster than we expected in our pessimistic forecast in June.”
In previous forecasts, the Montreal-based financial services company expected house prices to fall 15% over the same period.
However, Desjardins economists Randall Bartlett, Hale è ne Begin and Marc Desormeaux said in their report on Thursday that average house prices had fallen by 15%, or more than 4% in each of the three months to June.
The Desjardins team said a more pessimistic outlook was a foregone conclusion, but the correction in the property market would not spread across the country.
“We still believe that in the provinces with the biggest increases during the outbreak, house prices will generally fall the most than expected.”
The Desjardins forecasts that New Brunswick, Nova Scotia and Prince Edward Island will be hit by sharp market adjustments, with house prices falling by 29 per cent, 27 per cent and 25 per cent respectively from their peak in February 2022 to December 2023.
Between December 2019 and February 2022, prices in these three regions rose by 71%, 67% and 62%, respectively.
For Canada’s two real-estate giants, BC and Ontario, the adjustment may be more sudden than elsewhere.
“from the peak to December 2023, house prices in these two places will fall by 22 per cent and 24 per cent respectively, as they rose by an average of 43 per cent and 58 per cent from December 2019 to February 2022.”
For Ontario, Desjardins believes that house prices in the Greater Toronto area are the most volatile.
“however, we expect the rate of decline in house prices to slow, as international migration, return to work and increased affordability will help the future development of the property market,” economists said. ”
According to the report, the correction in house prices in Quebec will be flat, with prices in Quebec expected to fall by 17 per cent by December 2023, while prices in Quebec rose 51 per cent from the end of 2019 to the peak in February this year.
“because house prices are cheaper here, the average price in April was C $510000, while the average price in Ontario was C $1 million in February, not to mention Quebec people are in a better financial position.”
In addition, Desjardins expects the policy rate of the Bank of Canada (Bank of Canada) to “peak” to 3.25% this year, until 2023, when the housing downturn slows economic growth, the central bank will wake up and start cutting interest rates.
The downturn in the Canadian real estate market has posed challenges for many families, with home sales and prices shrinking rapidly and are likely to fall further over the next 18 months. Although this will make people face more difficulties, but this adjustment will help to restore some sanity to the Canadian real estate industry. ”
Recently, the School of Public Policy of the University of Calgary released a study showing that Canada needs to change its federal visa policy to speed up the admission of Ukrainian refugees.