2022 national home price forecast reduced to end year slightly below 2021 levels, following quarterly declines across Canada in Q3

• By Mike Heddle
• Posted Monday, Oct 17, 2022 1:38 pm

2022 national home price forecast reduced to end year slightly below 2021 levels, following quarterly declines across Canada in Q3

Canadian home prices are projected to end the year modestly lower than where they were during the final months of 2021, undoing the price growth seen earlier this year. Royal LePage is forecasting that the aggregate price of a home in Canada will decrease 0.5% in the fourth quarter of 2022, compared to the same quarter last year, due to a continued softening of home prices in a majority of markets across the country in the third quarter (94% of regions in the report).

“September did not bring the typical seasonal lift in the number of homes trading hands in this country, a clear indication that our housing market continues to adjust to higher borrowing costs,” said Phil Soper, president and CEO of Royal LePage. “Home prices follow sales volume trends, which means we will see further softening in the final months of the year. Our revised outlook has national prices at just below where we ended 2021, erasing the gains made in the first quarter of 2022.” 

According to the Royal LePage House Price Survey, the aggregate price of a home in Canada increased 3.3% year-over-year to $774,900 in the third quarter of 2022. However, on a quarterly basis, that figure decreased 4.9%...[READ MORE]