Homes sales, prices will reach their bottom in early 2023: TD report – National | Globalnews.ca

A new report from TD Economics predicts Canada will see the weakest level of home sales since 2001 this year.

The housing market outlook from economist Rishi Sondhi attributes the prediction to the poorest affordability level since the late 80s and early 90s.

Sondhi is forecasting that home sales will reach their bottom sometime in early 2023, after declining 20 per cent from peak to trough.

TD also sees average home prices in Canada bottoming out early this year.

Sondhi says steep annual average price declines are expected in most of the Atlantic provinces, Ontario and B.C. in 2023, while lesser drops will materialize across the Prairies and in Newfoundland and Labrador.

He added that broad-based price regional gains are likely in 2024.

“However, we expect some mild outperformance in the Prairies and Newfoundland and Labrador as those markets continue to benefit from a favourable affordability gap. In contrast, tougher affordability conditions in Ontario, B.C. and across much of the Atlantic should restrain growth,” he said.

The Canadian Real Estate Association said last month that the actual national average home price was $632,802 in November, a 12 per cent decline from the same month last year.

November home sales totalled 30,135, a 39 per cent drop from a year prior.

With files from Global News 

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