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Home sales across Canada are expected to drop 23% this year, according to a Monthly Housing Market Update by RBC, with a pandemic-era housing market boom in full swing.
Since the Bank of Canada’s policy rate hike in March, home resales have fallen 31% nationwide. July alone saw a monthly decline of 5.3%!
According to the report, most of Ontario and British Columbia have seen even greater drops, the former overheating markets are starting to see a dramatic downturn.
BC’s Fraser Valley is leading the drop in the province, with prices falling 5.6% (or $65,000) since March, slightly more than twice the decline in the Vancouver area.
According to the report’s predictions, the market will adjust to higher interest rates by early 2023 but will take a few months to tighten demand-supply conditions.
It has also been predicted that home resales will fall 23% in Canada in 2022 and a further 15% in 2023.
You can see the full report here.