A home for sale in Toronto’s Annex neighbourhood on July 18.Fred Lum/The Globe and Mail
Canada’s average home price could drop by as much as 25 per cent from peak values in February by the end of next year, with the Maritimes and most of Ontario shouldering greater declines owing to the sharp jump in borrowing costs, says a new private-sector forecast.
Since the Bank of Canada started raising interest rates in March to rein in inflation, the country’s housing market has slowed considerably. Sales volumes have plummeted, and the average home price is down 18.5 per cent from February to June, according to Canadian Real Estate Association data.
Consequently, the Desjardins Group said it has had to drastically revise its forecast because the market was correcting faster than it had anticipated. In June, Desjardins economists predicted a 15-per-cent decline in the average price from…
