After two years of record sales and price increases, housing markets across Canada are coming back down to earth in what appears to be a soft landing, according to Royal LePage..Here are the company’s overviews of major markets and price forecasts for Q4 2022..Greater Vancouver Area.The GVA posted the first quarter-over-quarter aggregate price decline since Q3, 2019, down 4.1% over Q1 of 2022..“Activity has slowed over the last few months. While prices continue to rise year-over-year, the rate of appreciation is slowing, and we are seeing signs market balance is returning,” said Randy Ryalls, Royal LePage Sterling Realty. “We are seeing buyers taking a step back and putting conditions into their offers again, and sellers are no longer holding back offers.”.Royal LePage forecasts a year-over-year aggregate price increase of 5% in Q4..Calgary.“The market remains very tight. Due to a lack of supply in detached houses, there is competition from both local buyers and those moving to Calgary,” said Corinne Lyall, Royal LePage Benchmark. “Sales are historically high and while we do see new construction, it has not kept up with demand. Good product that comes to market, is being quickly absorbed.”.“Buyers continue to find excellent value in Calgary’s condo market. The region has struggled with over-supply in recent years, which resulted in excellent selection and less competition than the single-family home market.”.Royal LePage forecasts the aggregate price will increase 8%, year-over-year in Q4..Edmonton.“Edmonton had a strong start to the year while June slowed to a pace more typical of July,” said Tom Shearer, Royal LePage Noralta Real Estate. “We are still in a seller’s market. Inventory is slowly building and buyers are finding selection is improving.”.Royal LePage forecasts the aggregate price will increase 9% year-over-year in Q4..Regina.“We’ve seen some frenzied buying among those with mortgage rate holds set to expire, or those looking to transact prior to further rate hikes,” said Mike Duggleby, Royal LePage Regina Realty..“Supply is increasing; however, inventory remains below historic norms. In some cases, well-priced properties in popular neighbourhoods are selling in multiple-offer scenarios.”.Royal LePage forecasts a 7% increase in the aggregate price, year-over-year, in Q4..Winnipeg.“We’ve seen a significant boost in inventory and a slight dip in demand, following strong sales and price gains in April and May,” said Michael Froese, Royal LePage Prime Real Estate. “I think we’ll start to see prices level off. And, with interest rates expected to increase further, it’s going to create some breathing room for buyers in the months ahead.”.“Buyers are taking advantage of reduced competition and writing conditional offers again, including subject to sale, inspection and financing. It feels like we are moving towards a healthier, more balanced environment.”.Royal LePage forecasts the aggregate price will increase 8% year-over-year in Q4..Greater Toronto Area.The aggregate price in the GTA decreased 8.1% in the second quarter from the first quarter, the first quarterly decline since Q1 of 2018..“The GTA and secondary cities in the Golden Horseshoe have seen housing demand slow as buyers step back to time the market,” said Karen Yolevski, Royal LePage Real Estate Services Ltd. “Buyers are in a wait-and-see pattern, assessing the impact of further expected interest rate hikes and rising inflation. For the first time since the start of the pandemic, the market is experiencing a more normal summer slowdown in activity.”.Royal LePage forecasts the aggregate price will increase 3%, year-over-year in Q4 2022..Ottawa.While prices continue to show year-over-year growth, on a quarterly basis, the aggregate price in Ottawa decreased 1.1% in the second quarter of 2022..“Buyer demand remains strong. However, homebuyers are proving more cautious, taking more time before making an offer and reintroducing conditions,” said John Rogan, Royal LePage Performance Realty. “Inventory is beginning to creep up slowly, but demand continues to outpace supply.”.Royal LePage forecasts the aggregate price of a home will increase 10%, year-over-year, in Q4..Greater Montreal Area.“We are seeing a shift in buyer behaviour, with rising interest rates being the main factor,” said Marc Lefrançois, Royal LePage Tendance. “We are entering a new chapter signaling healthier price appreciation.”.Royal LePage forecasts the aggregate price will increase 12.5%, year-over-year in Q4..Halifax.“The market is shifting to a healthier market. Buyers are able to put conditions on their purchase offers and local buyers are successfully transacting with less competition from outside the province,” said Matt Honsberger, Royal LePage Atlantic..“It is good for move-up buyers because they are confident in their ability to find their next home, while selling their existing home at current market value.”.Royal LePage forecasts the aggregate price will increase 9%, year-over-year in Q4.
