Re/Max predicts housing prices decline this fall
According to a new report by Re/Max Canada, the national average real estate price will go down by 2.2% during the last months of 2022.
The report says the moderation in the market expected for the September-to-December period is caused by growing interest rates, record inflation and broader global and economic uncertainties.
As you know, mortgage rates have risen significantly this year, increasing borrowing costs for potential Canadian homebuyers.
Re/Max Canada president Christopher Alexander says many markets are facing weaker sales amid the latest interest rate hikes, giving some relief from the unprecedented demand and sharp price increases seen all over Canada in 2021 and in early 2022.
Nevertheless, Alexander considers today’s pause in the market activity to be only temporary and remaining only until housing supply goes up. He says hike cycles will probably happen again.
The Re/Max report was released after the Canadian Real Estate Association earlier this month decided to reduce its forecast for home sales and price growth for 2022.