It’s shaping up to be a quiet fall for Canadian real estate. Sales are down, prices have plummeted, and withreport
Although the Toronto area has seen a dramatic housing correction this year, the market may be gradually balancing out. Home sales have remained more or less flat since July, increasing just 0.2% between September and October. The overall price depreciation is largely due to the single-family home segment, which fell 3.7% year over year. On the flip side, condo prices have held strong, with an HPI 7.5% above the year-ago level.
This “controlled softening” is expected to persist in the near term, and home resales are estimated to drop 2.6% month over month. This is certainly a slower pace of decline compared to the past three months, which saw an average drop of 7%. RBC forecasts Montreal’s market will bottom out in the early spring of 2023.
Since reaching a peak in April, property values are down 9.2%, including a 0.6% drop between September and October, and that downward trajectory is expected to persist. With that said, the decline is anticipated to be at a more moderate rate than in months past, with October’s decline being the slightest in the past five months.