Ontario Home Prices To Drop 25% From Peak, But Affordability Won't Improve

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Ontario Home Prices To Drop 25% From Peak, But Affordability Won't Improve
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Canada’s housing market correction has slowed considerably in recent months, leading analysts to believe that a bottom is not far off. DesjardinsGroup | realestate realestatenews housingmarket Canada

Published:Canada’s housing market correction has slowed considerably in recent months, leading analysts to believe that a bottom is not far off.from Desjardins, Randall Bartlett, Senior Director of Canadian Economics, and Marc Desormeaux, Principal Economist, revealed that they expect sales to find a bottom in the second half of 2023, with prices rising shortly thereafter. Housing starts should bottom out in early 2024 before beginning a gradual climb.

By December, average home prices in the province will be 25% below peak levels, and just 15% above December 2019 figures. At the peak, they were 60% above pre-pandemic prices. “This is a very difficult time for households in Canada. In Ontario specifically, housing affordability eroded significantly during the pandemic, with the affordability gap with Quebec [the most affordable province] and the rest of the country widening considerably,” Bartlett and Desormeaux said.

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