A new report from real estate company Royal LePage has found that buyer demand for homes is remaining strong in Canada despite borrowing rate hikes — and the market may be stabilizing after the pandemic boom.
Real estate experts believe that this very slight decrease signals the market may be close to recovering from 2022's post-pandemic market correction. However, the second quarter actually saw an increase compared to the previous quarter, rising by four per cent. He added those who purchased homes "at the tail end of the pandemic-field real estate boom" saw the value of their homes drop during the market correction that followed — but now prices have steadied enough that those homeowners would likely be able to resell today without significant loss.
The price of a home in the Greater Toronto Area increased slightly in the second quarter of 2023, but is still seven per cent lower than the peak of 2022. Prices also remain 6.9 per cent lower than 2022’s peak in Greater Vancouver, the country's most expensive market. Around one-third of the regions in the report showed house prices increasing in the second quarter of 2023, with four regions reporting decreases.