Economists at TD Canada Trust (TD) are forecasting a 10% correction in Canadian home prices, double the decline they had expected in September of this year.
The gloomier outlook for Canada’s housing market is due to expectations for a loosening of the housing markets in British Columbia and Ontario.
The cities of Toronto and Vancouver remain Canada’s biggest housing markets.
Ontario’s sales-to-new-listings ratio fell to 39% in October from 63% this past May due to a sudden surge in supply, said TD in a new report.
Although a 10% decline is steeper than previous forecasts, the report noted that even after that decrease, average home prices across Canada would still be 15% higher than they were before the Covid-19 pandemic began in 2020.
The average home price in Canada is currently $757,600, according to industry data.
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