Royal LePage reports on Q4 national home prices
During Q4 2022, the median price of a Canadian home saw its first annual decline since the financial crisis in 2008, with a 2.8% drop from the same period in 2021, according to Royal LePage.
The Q4 aggregate price of $757,100 also represented the third straight quarterly decline, with a 2.3% decrease from Q3.
By asset class, median prices fell by 3.7% to $781,900 for single-detached homes, but increased by 1.4% year-over-year to $561,600 for condo units.
“Activity levels were down sharply compared to the hypercharged state we experienced during the pandemic, with home prices flattening or showing modest declines,” said Phil Soper, president and CEO of Royal LePage.
What is the likely trajectory of the housing market in early 2023?
Soper stressed that while the worst of the housing market’s volatility is likely over at this point, Canada is still experiencing a widespread shortage of homes “that cannot be offset by temporarily cooling demand.”
This market force is expected to come into play in the very near future.
“Many sidelined buyers are waiting patiently for the bottom to be revealed,” Soper said. “Once interest rates stabilize and consumers adapt to their new normal, many of today’s sidelined buyers will be back – sooner than many analysts are predicting.”
