Desjardins Canadian Residential Real Estate Outlook in June has indicated a property housing crash of up to 20% by 2023.
The economic report was issued by their economic studies group under an economic viewpoint report.
Their report goes on to state that the party is coming to an end and the Maritime provinces will be the hardest hit given that they gained the largest increase in property values spurred on by migration from Ontario caused by the Covid pandemic.
The report’s authors state most of the influx in population growth to the Maritimes came from the Ontario market.
They concluded with, “It looks as though the Canadian housing market correction we expected has begun, though it’s still concentrated in a small number of markets. But there’s no need to panic. While a correction in the range of 10% to 20% is likely by the end of next year in most provinces, average home prices are expected to remain above the pre‐COVID level and trend. As such, the anticipated correction should bring more balance to the Canadian housing market.”
The puzzling Part of the report stated that Ontarians were leaving for less expensive housing markets. One must then ask why did housing values increase so dramatically in Ontario making it the least affordable housing province in Canada?
The full report can be viewed here: