With talk of rising interest rates, high inflation and rising home prices on the rise, a little piece of good news is just what Canadian buyers need to kick off the new year.
According to
RE/MAX® Annual report on the outlook for the housing market in Canada, the real estate market across the country is changing – and largely for the better. In 2023, Canadians can expect to see the start of more affordable housing, a return to equilibrium in the real estate market, and lower house prices in Canada’s most expensive cities (finally!).
Whether you’re considering selling your home or stepping onto the homeownership ladder for the first time, these seven key predictions from RE/MAX
2023 Canadian Housing Market Outlook Report can help you make better real estate decisions this year.
The Canadian housing market will return to equilibrium in 2023
Unlike 2022, 60% of housing markets in Canada — including the Greater Toronto Area (GTA), Greater Vancouver Area (GVA), Calgary, Regina and Winnipeg — are expected to balance in 2023 thanks to lower prices and lower demand.
What it means for you: A balanced market occurs when supply and demand are about the same. In a balanced market, sellers tend to accept reasonable offers, homes stay on the market for a typical length of time, and there are usually plenty of homes to choose from. In other words, it’s good for sellers and buyers.
Home prices in many parts of Canada are expected to fall
Rising interest rates and a looming recession mean the national average house price is expected to 3.3% dropwith many notoriously expensive areas set to drop 10% or more including GVA, GTA and Quebec City.
What this means for you: According to RE/MAX Canada, if you are a first-time home buyer, you will be able to enjoy a housing market cooling and bid with more bargaining power, especially in Ontario and Western Canada, where the biggest price drops are expected.
Atlantic Canada’s Largest Cities Set to See Rising Prices
In Eastern Canada, average selling prices are expected to jump in some of the region’s largest cities, including Halifax, Nova Scotia, and St. John’s, Newfoundland and Labrador, where the average price houses in 2023 is estimated at $586,076 and $350,805respectively.
What this means for you: If you’re considering buying a home in these cities, you can expect to see prices rise 8% in Halifax and 4% in St. John’s. However, while housing affordability is driving up demand (and selling prices) in these cities, Atlantic Canada remains one of the the most affordable neighborhoods in the country to buy a house.
Condominiums are expected to remain strong in 2023
A return to the office and an end to the urban exodus caused by the pandemic means that more people are returning to the city. This bodes well for condominiums, which are currently the dominant housing type in many urban areas of Canada, according to the RE/MAX report.
What this means for you: The condo market in Canada’s biggest cities will likely be busier than usual, especially in places like GVA, where prices will continue to fall in 2023; and Edmonton, where demand for downtown condos is expected to increase further.
Most Canadians believe the supply of affordable housing will increase in 2023
RE/MAX reports that 54% of Canadians believe the two-year ban on foreign investors from buying property will increase the availability of affordable housing for Canadian buyers.
What this means for you: Effective January 1, 2023, non-Canadians (anyone who is not a Canadian citizen, permanent resident, or person registered under the Indian Act) will not be able to purchase property in Canada for two years, with some exceptions. The purpose of this law is to help regulate high prices in the Canadian housing market.
The tendency to leave the province is going nowhere
Thinking of moving out of province to save on home buying costs? You’re not alone: 15% of Canadians plan to move to another province in 2023 in search of more affordable and livable housing, with non-homeowners twice as likely to move.
What this means for you: Balanced markets and buyer’s markets — areas where supply equals or exceeds demand — are your best bet for a good deal. According to RE/MAX 2023 Canadian Housing Market Outlook Report, Nanaimo, Kelowna, Saskatoon and Winnipeg to the west; and Hamilton-Burlington, Brampton, Mississauga and Niagara in the east are all considered buyers’ markets in 2023.
Majority of Canadians still say home ownership is the best long-term investment
Most Canadians remain optimistic about investing in real estate. According to RE/MAX, 73% of Canadians think home ownership is one of the best long-term investments they can make. Still, 67% say they are less likely to buy in the first half of 2023, and 62% are less likely to sell during this time.
What this means for you: The current economic climate is challenging, and that means it’s more important than ever to keep up to date with developments in Canada’s housing market. If you plan to buy a house in 2023, contact an expert who can answer your questions and guide you through the process of entering the real estate market.
Of course, the Canadian housing market can change quickly. Whether you are buying or selling, you can keep up to date with the latest trends by visiting the
2023 Canadian Housing Market Outlook Report and by contacting an experienced RE/MAX agent.
To search for real estate listings or to find an agent, visit the RE/MAX website. To keep up to date with the Canadian real estate market, consult the 2023 Canadian Housing Market Outlook Report.
Each RE/MAX office is independently owned and operated. This content is for general informational purposes only and does not constitute financial, investment, legal, tax or accounting advice.
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