TD sees up to 25% drop in Canadian home prices by early 2023

Canadian home prices could drop up to 25% by early 2023: TD Projected price drop represents an unprecedented decline at least going as far back as the late 1980s Author of the article: The Canadian Press The Canadian Press Publishing date: Aug 29, 2022 • 2 days ago • 1 minute read • Join the conversation TD estimates estimates the number of home sales will fall 35 per cent by early 2023. TD estimates estimates the number of home sales will fall 35 per cent by early 2023. Photo by Dan Janisse/The Windsor Star Article content TORONTO — A report by TD Bank suggests the average price of a home in Canada could fall 20 to 25 per cent from its peak seen earlier this year to the first quarter of 2023. Advertisement 2 Story continues below This advertisement has not loaded yet, but your article continues below. Article content The report also estimates the number of home sales will fall 35 per cent over the same time period. The Winnipeg Sun's Daily Headline News Banner The Winnipeg Sun's Daily Headline News Sign up to receive daily headline news from the Winnipeg SUN, a division of Postmedia Network Inc. Email Address By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300 Article content TD economist Rishi Sondhi says the projected price drop represents an unprecedented decline at least going as far back as the late 1980s, when the data began, but it follows an unequally unprecedented rise during the pandemic. The report notes the drop in national home prices would only partially retrace the 46 per cent gain over the course of the pandemic. More On This Topic A for sale sign displayed outside a home in Toronto. Canada’s real estate market is cooling. Here’s what to expect this fall Covenant House Toronto. Rents are so high in Toronto that students are living in homeless shelters Three quarters of millennials said that if housing was more affordable, they would prefer to stay in their current city or town. Canada’s millennials still bent on owning homes, even if it means relocating Homes in Toronto. ‘Softer’ values for detached homes bringing buyers back into the market As such, Sondhi writes that the forecast can be more aptly described as a recalibration of the market, instead of something more severe. Long term, TD remains more positive on the outlook for housing because it says population growth should remain healthy, underpinning fundamental demand for housing.