Still, despite these drops, “we remain of the view that home prices will end 2023 above their pre‑pandemic levels nationally and in each province,” the company added.
Read more: Housing correction now in full swing, says RBC’s Hogue
This trend is not likely to be the case for sales, which have recently plunged to levels sufficient to put most housing markets back in balanced territory.
“At the national level, existing home sales and prices have fallen every month since February,” Desjardins said. “Prices have dropped more than 4% in each of the three months through June.”
The main drivers of these forecasts are weaker economic data so far this year and the central bank’s aggressive monetary policy, which will likely lead to a BoC policy interest rate of 3.25% later this year.
