A Leger survey* of Re/Max real estate brokers and agents finds they're anticipating the national average home sales price to decline 2.2% over the last quarter of 2022..Bucking the downward trend, seven out of 30 markets analyzed are likely to experience modest price appreciation between 1.5% and 7%, including Alberta’s two largest cities..Interest rate hikes and recession worries have not had a notable effect on the Calgary market, which has largely been insulated due to its relative affordability, according to brokers and agents in the city, who are expecting a modest price increase of 3%.As of Sept. 27, the Calgary Real Estate Board, which provides daily statistics updates, says the average price year-to-date is $520,709, up 5.18% from the same period last year..In Edmonton, rising interest rates have had the greatest impact on homes priced between $500,000 and $1,000,000, while homes priced below $400,000 are still relatively affordable and a good entry point into the market, despite the current economic climate, said the agents and brokers surveyed, who expect a 1.5% price increase..Throughout the rest of the Prairies and BC, the average residential sale price is expected to decline between zero and 6.5%, with the largest declines in the lower mainland..In Ontario, brokers and agents expect average residential sales prices to remain steady or decrease between 2% and 10% through the course of the year, with the largest drops in the Greater Toronto Area..Low inventories in Kelowna, Victoria, Vancouver and Calgary are expected to place upward pressure on home prices in 2023 and beyond..In 18 of the 30 markets surveyed, brokers and agents expect a decline in sales this fall..The majority of those surveyed said rising interest rates have slowed activity in their markets, the biggest factor impacting home buyer and seller confidence, a trend expected to continue for the remainder of 2022. .The Leger survey found 44% of Canadians agree rising interest rates have put a hold on their home buying intentions, while 34% said they were still in a buying mood.."While we are still facing significant housing supply shortages across the country, many markets are experiencing softer sales activity given recent interest rate hikes. This provides some reprieve from the unprecedented demand and unsustainable price increases we've seen across Canada through 2021 and in early 2022," says Christopher Alexander, president at Re/Max Canada.."However, the current lull in the market is only temporary. Until housing supply increases, these 'boom' and 'bust' cycles will likely be a recurring event."."Despite the fact nearly half of Canadians are waiting to buy or sell a home, we're confident that as economic conditions improve by mid-2023, activity will resume," says Elton Ash, executive vice-president, Re/Max Canada.."Timing the market for short-term investment is extremely difficult and rarely successful. But real estate as a long-term investment continues to yield solid returns.”.Of note, according to Re/Max, luxury home sales have remained resilient to interest rate hikes in many markets across the country, which impact market-wide average prices, keeping them higher. .Ash advises anyone in the market to buy should inform themselves of market conditions, which can vary greatly between housing types and markets, even those close to each other..*Leger surveyed 1,522 Canadians online between September 16 and 18, 2022.
