{"id":9374,"date":"2022-08-26T14:39:07","date_gmt":"2022-08-26T14:39:07","guid":{"rendered":"https:\/\/ambassadornews.org\/?p=9374"},"modified":"2022-08-26T14:39:10","modified_gmt":"2022-08-26T14:39:10","slug":"canadas-real-estate-market-is-cooling-heres-what-to-expect-this-fall","status":"publish","type":"post","link":"https:\/\/ambassadornews.org\/en\/canadas-real-estate-market-is-cooling-heres-what-to-expect-this-fall\/","title":{"rendered":"Canada&#8217;s real estate market is cooling. Here&#8217;s what to expect this fall"},"content":{"rendered":"<p class=\"has-text-align-left\">TORONTO &#8211;<\/p>\n\n\n\n<p class=\"has-text-align-left\">After fuelling Canada&#8217;s economy through the COVID-19 pandemic, the real estate market is showing signs of weakness as home prices fall and bidding wars dissipate.<\/p>\n\n\n\n<p class=\"has-text-align-left\">It&#8217;s welcome news for prospective buyers hoping for a better price. But as the busy fall season nears, realtors and economists are at odds over how long the pricing slide will last and how low it will go.<\/p>\n\n\n\n<p class=\"has-text-align-left\">The fall is going to be interesting because we&#8217;re going to see probably more buyers jumping into the market and you don&#8217;t need a ton more buyers to provide a little bit more stability to prices,&#8221; said John Pasalis, president of Realosophy Realty Inc. in Toronto.<\/p>\n\n\n\n<p class=\"has-text-align-left\">&#8220;Just a little bit of a bump in demand could be the difference between homes selling in three, four weeks versus selling in two weeks or selling a lot faster.&#8221;<\/p>\n\n\n\n<p class=\"has-text-align-left\">The average home price is still above pre-pandemic levels, but increasing mortgage rates and inflationary pressures are weighing on the market.<\/p>\n\n\n\n<p class=\"has-text-align-left\">When pandemic lockdowns began in March 2020, the Toronto Regional Real Estate Board said the average home price in the area &#8212; one of Canada&#8217;s hottest &#8212; sat at $902,680. Last month, it was $1,074,754, a one per cent hike from July 2021, but a six per cent drop from June 2022.<\/p>\n\n\n\n<p class=\"has-text-align-left\">The latest data from the Canadian Real Estate Association (CREA) showed prices hit $629,971 in July, down five per cent from $662,924 last July. On a seasonally adjusted basis, it amounted to $650,760, a three per cent drop from June. When pandemic lockdowns began in March 2020, the average national price was $543,920.<\/p>\n\n\n\n<p class=\"has-text-align-left\">The association forecast the national average home price will rise by 10.8 per cent on an annual basis to $762,386 by the end of 2022 and hit $786,252 in 2023.<\/p>\n\n\n\n<p class=\"has-text-align-left\">But some economists are anticipating an even greater price reduction.<\/p>\n\n\n\n<p class=\"has-text-align-left\">In June, a trio of Desjardins economists said they expected the average national home price to fall by 15 per cent between its February high &#8212; $817,253 &#8212; and the end of 2023, but because &#8220;we&#8217;re almost there,&#8221; they adjusted their forecast in August to predict a drop between 20 and 25 per cent.<\/p>\n\n\n\n<p class=\"has-text-align-left\">&#8220;Home prices continue to fall and have further to go before they find a bottom,&#8221; said Randall Bartlett, Helene Begin and Marc Desormeaux, in a report released July 11.<\/p>\n\n\n\n<p class=\"has-text-align-left\">&#8220;That said, we still believe home prices will end 2023 above pre-pandemic levels nationally and in all 10 provinces.&#8221;<\/p>\n\n\n\n<p class=\"has-text-align-left\">In anticipation of a drop in prices, agents have noticed prospective buyers sitting on the sidelines of the market in recent months, while sellers come to terms with the fact that their homes won&#8217;t fetch as much money as they would have at the start of the year.<\/p>\n\n\n\n<p class=\"has-text-align-left\">Lori Fralic calls it a &#8220;stalemate.&#8221;<\/p>\n\n\n\n<p class=\"has-text-align-left\">&#8220;We are seeing lowball offers,&#8221; said the Vancouver agent with Keller Williams Realty VanCentral.<\/p>\n\n\n\n<p class=\"has-text-align-left\">&#8220;There&#8217;s lots of bargain hunters out there who are throwing out offers but if they don&#8217;t have to sell, a lot of sellers are saying, &#8216;no, sorry, not taking it.&#8221;<\/p>\n\n\n\n<p class=\"has-text-align-left\">It&#8217;s a change from the torrid pace of sales and frenzied bidding wars seen earlier in the year and late last year.<\/p>\n\n\n\n<p class=\"has-text-align-left\">Much of the shift is attributable to mortgage rates, which mirror fluctuations in interests rates and can eat into buying power.<\/p>\n\n\n\n<p class=\"has-text-align-left\">The Bank of Canada increased its key interest rate by one percentage point to 2.5 per cent in July in the largest hike the country has seen in 24 years.<\/p>\n\n\n\n<p class=\"has-text-align-left\">Economists foresee the increases continuing and Fralic said they&#8217;re already encouraging people who don&#8217;t need to buy immediately to hold off.<\/p>\n\n\n\n<p class=\"has-text-align-left\">She&#8217;s seen a drop in prices in B.C., but said it&#8217;s not as much of a decrease as many expected.<\/p>\n\n\n\n<p class=\"has-text-align-left\">&#8220;If people are thinking (prices) are going to plummet, I don&#8217;t think that&#8217;s accurate,&#8221; she said.<\/p>\n\n\n\n<p class=\"has-text-align-left\">&#8220;If you look at the 10-year average of Metro Vancouver, housing prices are way up and if they do dip, they might dip slightly and come back up. There&#8217;s always been sort of a steady incline with dips along the way.&#8221;<\/p>\n\n\n\n<p class=\"has-text-align-left\">The Real Estate Board of Greater Vancouver said the composite benchmark price for the region &#8212; often Canada&#8217;s hottest &#8212; sat at more than $1.2 million in July, a roughly 10 per cent increase from July 2021 and a two per cent drop from June 2022.<\/p>\n\n\n\n<p class=\"has-text-align-left\">&#8220;It&#8217;s anyone&#8217;s guess how much prices will fall,&#8221; Sherry Cooper, chief economist at Dominion Lending Centres, said.<\/p>\n\n\n\n<p class=\"has-text-align-left\">Markets, she said, tend to be very localized and the surges or drops some see may not be mimicked in others.<\/p>\n\n\n\n<p class=\"has-text-align-left\">For example, she said Alberta has not seen the slowdown many other Canadian markets have because its energy sector is much stronger than it was in the past.<\/p>\n\n\n\n<p class=\"has-text-align-left\">But Cooper noted home sales activity have declined very sharply in the Greater Toronto Area, the Greater Golden Horseshoe Area and in parts of British Columbia around Vancouver.<\/p>\n\n\n\n<p class=\"has-text-align-left\">&#8220;It&#8217;s the markets that experienced the 50 per cent increase in home prices that have seen the biggest correction, and that&#8217;s what you&#8217;d expect because those are the most expensive homes in Canada with the largest outstanding mortgages.&#8221;<\/p>\n\n\n\n<p class=\"has-text-align-left\">This report by The Canadian Press was first published Aug. 24, 2022.<\/p>\n\n\n\n<p class=\"has-text-align-left\">04:00ET 26-08-22<\/p>\n\n\n\n<p class=\"has-text-align-left\">RELATED IMAGES<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" data-src=\"https:\/\/www.ctvnews.ca\/content\/dam\/ctvnews\/en\/images\/2022\/8\/26\/-for-sale--sign-at-a-house-in-toronto-1-6043205-1661508026255.jpg\" alt=\"A 'For Sale' sign at a house in Toronto on July 12, 2022. (Cole Burston \/ THE CANADIAN PRESS)\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" class=\"lazyload\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-left\">A &#8216;For Sale&#8217; sign at a house in Toronto on July 12, 2022. (Cole Burston \/ THE CANADIAN PRESS)<\/p>","protected":false},"excerpt":{"rendered":"<p>TORONTO &#8211; After fuelling Canada&#8217;s economy through the COVID-19 pandemic, the real estate market is showing signs of weakness as home prices fall and bidding wars dissipate. It&#8217;s welcome news for prospective buyers hoping for a better price. But as the busy fall season nears, realtors and economists are at odds over how long the [&hellip;]<\/p>\n","protected":false},"author":9,"featured_media":9375,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"jnews-multi-image_gallery":[],"jnews_single_post":{"subtitle":"","format":"standard","video":"","gallery":"","source_name":"","source_url":"","via_name":"","via_url":"","override_template":"0","override":[{"template":"1","single_blog_custom":"","parallax":"1","fullscreen":"1","layout":"right-sidebar","sidebar":"default-sidebar","second_sidebar":"default-sidebar","sticky_sidebar":"1","share_position":"topbottom","share_float_style":"share-monocrhome","show_share_counter":"1","show_view_counter":"1","show_featured":"1","show_post_meta":"1","show_post_author":"1","show_post_author_image":"1","show_post_date":"1","post_date_format":"default","post_date_format_custom":"Y\/m\/d","show_post_category":"1","show_post_reading_time":"0","post_reading_time_wpm":"300","show_zoom_button":"0","zoom_button_out_step":"2","zoom_button_in_step":"3","show_post_tag":"1","show_prev_next_post":"1","show_popup_post":"1","number_popup_post":"1","show_author_box":"1","show_post_related":"0","show_inline_post_related":"0"}],"override_image_size":"0","image_override":[{"single_post_thumbnail_size":"crop-500","single_post_gallery_size":"crop-500"}],"trending_post":"0","trending_post_position":"meta","trending_post_label":"Trending","sponsored_post":"0","sponsored_post_label":"Sponsored by","sponsored_post_name":"","sponsored_post_url":"","sponsored_post_logo_enable":"0","sponsored_post_logo":"","sponsored_post_desc":"","disable_ad":"0"},"jnews_primary_category":{"id":""},"jnews_social_meta":{"fb_title":"","fb_description":"","fb_image":"","twitter_title":"","twitter_description":"","twitter_image":""},"jnews_override_counter":{"override_view_counter":"0","view_counter_number":"0","override_share_counter":"0","share_counter_number":"0","override_like_counter":"0","like_counter_number":"0","override_dislike_counter":"0","dislike_counter_number":"0"},"jnews_post_split":{"enable_post_split":"0","post_split":[{"template":"1","tag":"h2","numbering":"asc","mode":"normal","first":"0","enable_toc":"0","toc_type":"normal"}]},"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[48],"tags":[],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Canada&#039;s real estate market is cooling. 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