Every year, the question arises, what is the forecast for the real estate market in the coming months? In 2023, the question is even more relevant since we have experienced great fluctuations due to, among other things, the pandemic in the last few years and it is sometimes difficult to know where to stand. The following article will attempt to shed some light on the subject so that you can make informed real estate decisions in 2023.
What to expect in 2023
It is always very difficult to predict what will happen in the real estate market. Forecasts must consider a lot of things, such as the area you live in, the neighbourhood you want to live in, and the type of home you want (single-family home, duplex, condominium, etc.). According to the Canada Mortgage and Housing Corporation (CMHC), the booming real estate market and high prices in Canada should continue in the coming year. CMHC says that by the end of 2023 or early 2024, sales and price growth in the market should be close to historical averages. According to them, employment levels and increased immigration will play a major role in sale prices and housing starts should remain above the observed averages. Of course, the provinces that have experienced the most significant price increases will experience corrections, but that does not mean that affordability will be easy and that we can talk about affordability.
Interest rate increases
The Bank of Canada’s interest rate hikes have had an impact on the real estate market by slowing the pace of home sales, but even if this means lower prices, it has not necessarily made buying a home more affordable.
According to a Desjardins report, “greater affordability will lead to a rebound in the housing market starting in 2024. Home sales should initially stabilize late next year and begin to rebound in 2024. Desjardins also predicts that the Canadian economy will enter a recession in 2023. The report warns that governments will have to find ways to mitigate the impact of the economic downturn on the residential construction market. Of course, this is only a forecast, and many factors can have an impact on the strength of the housing market. Besides, who could have predicted the pandemic and its societal effects?
To buy or not to buy?
Despite these forecasts, it is still possible to make good deals on real estate. Usually, buying a property is a good investment. It is simply a matter of being well-accompanied in this process. Don’t hesitate to get help from a professional who can help you find the best offers if you are in the process of buying or find buyers if you are in the process of selling your home. A good real estate agent is your best ally in navigating these tumultuous waters.