5:12 PM Apr 13, 2023Although it was still down 9.2% from the record-high seen a year ago, the aggregate price of a home in Canada rose 2.8% quarter over quarter in Q1 2023, to $778,300, according to the latestBroken down by housing type, the national median price of a detached home increased 3.4% quarter over quarter to $808,700, while the median price of a condo was up 1.8% from Q4 2022 to $571,700. Prices were down 10.7% and 6.7%, respectively, on an annual basis.
“It’s quite clear that the substantial market correction ended sometime in March, about 12 months after it started,” Phil Soper, President and CEO of Royal LePage, told STOREYS. “The biggest piece of news out of the first quarter is the strength of the recovery. We’re in store for a more normal market going forward.”
As such, Royal LePage has revised its forecast for Canadian home prices. The real estate company is now predicting that the national aggregate price of a home will increase 4.5% in Q4 2023 compared to Q4 2022. While the forecast has been revised upwards, still-high interest rates will “keep a lid” on prices for the remainder of the year, Soper noted.Although some buyers have emerged from the woodwork, the cost of borrowing is still keeping some on the sidelines.