Most regions of the country (60%) are expected to shift into balanced market territory in 2023 – a trend that’s already starting to materialize as a result of current economic conditions – after a seller’s market dominated for much of the pandemic, says RE/MAX Canada’s 2023 Canadian Housing Market Outlook Report.
Amid rising interest rates and a looming recession, RE/MAX is anticipating a modest decline of 3.3% in average residential sales prices across Canada in 2023.
Canadians view homeownership as the best long-term investment they can make (73%). Yet, the majority are feeling less optimistic in the short-term with 67% less inclined to buy in the first half of 2023, and 62% less inclined to sell within that timeframe.
With the exception of Halifax, NS, Ottawa, ON and Montreal, QC, balanced market conditions are expected in Canada’s major city centres, including the Greater Toronto Area (GTA), ON, Mississauga, ON, Greater Vancouver Area (GVA), BC, Calgary, AB, Regina, SK and Winnipeg, MB, in what is being called a healthy development.
Move-up and move-over buyers are driving activity in these regions with the exception of Ottawa, ON and Calgary, AB, where first-time homebuyers are expected to lead. Following a two-year frenzy fuelled by the pandemic, average residential sale prices are anticipated to decrease in Canada’s priciest markets – the GVA and GTA.
Is 2023 a good year to become a homeowner?
With rent continually increasing and the market shifting from a seller’s market in most regions, 2023 may be a great time to buy your first home.
Buying may also be wiser than renting because: Your landlord can raise your rent annually, while your mortgage payment will remain the same throughout your term; If your landlord decides to sell or move into the property, you may have to move; and You can’t make changes to the property to suit the evolving needs of your family. Sure, you may be able to paint, but designing your dream kitchen is certainly out of the question.
Get preapproved before home shopping
Before you start looking at homes, it’s important to first determine how much you can comfortably afford to spend. Not only will getting your mortgage agent to arrange a preapproval help you understand what lenders look for when granting you a mortgage, but it will also prevent you from viewing properties that are out of your price range.
Even if you’re not quite ready to buy, your mortgage agent can advise you on important steps to take that will lead you to homeownership as soon as possible.
Have questions about whether now is the right time for you to become a homeowner? Answers are a call or email away!