Home sales, prices predicted to fall nearly 6% in 2023: CREA

In its recent forecast update, CREA says it expects the average home price to drop by 5.9 per cent on an annual basis to $662,000 in 2023 (Photo courtesy of Tim Boyle/Getty Images)

The Canadian Real Estate Association (CREA) says it expects the average home price to drop by 5.9 per cent to $662,000 in 2023.

The CREA released an updated forecast on Monday, which showcases the number of homes sold in the country.

Even though home prices are predicted to drop by almost six per cent in 2023, CREA expects home sales to increase by 10.2 per cent in 2024 as markets continue to return to normal.

It also expects prices to gain 3.5 per cent by 2024 to around $685,000, which is below 2022 but back on track with 2021.

CREA released an updated forecast on Monday, which showcases the number of homes sold in the country (Courtesy of the Canadian Real Estate Association).

Interest rates increased last spring, which put a stop on sales as sellers took their homes off the market to wait for prices to go up again.

On the other hand, buyers halted on their new buy due to the hike in mortgage payments.

First-time home buyers and most investors disappeared, which dropped home sales more than 39 per cent in December 2022 compared to 2021, according to CREA.

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