The phrase “short-term pain, long-term gain” has never been more true for homeowners.
What happened: The average price of a home will fall between 20-25% from all-time highs by early 2023, according to a new report (ruining homeowners’ days) published by TD Bank.
- Desjardins also recently projected that prices would fall by ~25% by the end of 2023.
Homeowners in BC and Ontario will be the hardest hit. Alberta, Quebec, and the Maritimes will experience mid-level declines. Manitoba and Saskatchewan will be relatively fine.
Why it matters: The drop would recalibrate the housing market after an unprecedented pandemic runup (but prices are projected to still stay above pre-pandemic levels).
Bottom line: TD’s long-term outlook for housing prices is positive. The report cites various factors that will continue to boost prices, including an eventual stop to the Bank of Canada’s rate hike spree, growing incomes and savings, and (most importantly) a growing population.