Buying a home in Canada gives you tax breaks and a nice chunk of equity. Despite this, 2023 isn’t expected to be a good year for property sales in Canada. It’s forecast that sales will be the lowest they’ve been since 2021. Home prices are anticipated to drop 11% this year, but this still isn’t enough to convince Canadians to invest in property. Not every province, including Nova Scotia, is being as badly hit, though. Let’s take a look at future expectations in Nova Scotia and the rest of Canada to see how they compare.
Nova Scotia’s riding high
Halifax will be one of the biggest housing markets in Nova Scotia this year, according to RE/MAX Canada. They predict that sales will be slower in the first part of the year, but will increase in the second half. This will result in property sales increasing by 8% by the end of 2023. T D Bank’s forecast says that property prices in Nova Scotia will drop by around 20% by June. But they add that prices rocketed in the province by 60% during the pandemic, so house prices will still be significantly higher than they were just a few years ago.
British Columbia’s slow burn
2023 will be a slow year for the housing market in British Columbia as sales are expected to drop by 10%. But BC will bounce back in 2024 and 2025, according to Central 1. They’re forecasting that home sales will grow by 10.7% in 2024 and a further 12.5% the following year. There is also a housing shortage in BC. As more units are built over the next few years, more properties will sell. To officially transfer a property to a new owner in BC, the conveyancing process must be done. This involves legal teams producing documents, transferring titles, and transferring funds.
Ontario’s mixed bag
If experts are correct, the property market in Ontario during 2023 will be a mixed bag. TD Economics predicts that the first half of 2023 will be a tough year for house prices in Ontario as they’ll decline. But things will get a little better in the second half of 2023 as prices will level out. Some areas in Ontario will continue to have sky-high property prices, though. Muskoka, in particular, will creep up once again. RE/MAX Canada expects an 8% increase, meaning property prices will rise to an average of $795,378.96. Meanwhile, in the Greater Toronto Area (GTA), prices will vary depending on the type of property. Aggregate properties are set to drop in price by 2%, detached homes will go down by 2.5%, and condo prices will go up by 1%. A recent report by CBC highlights how Ontario may hold off on building new homes while demand is low. If this happens, there’s a risk that there will be a higher demand for rental properties, meaning rental costs will go up.
Quebec’s dwindling market
2022 was a relatively good year for the housing market in Quebec. Prices went up by an average of 8.6%, however, sales were down by 15%. Unfortunately, it’s anticipated that property prices in Quebec will slump during 2023 by 7.4%. Some areas will experience an even steeper drop. For example, the Quebec Professional Association of Real Estate Brokers anticipates that single-family homes will drop in value by 12%.
Nova Scotia is predicted to be one of the most prosperous housing markets in Canada this year. While other provinces will see large price drops and a decline in sales, Nova Scotia could see prices rise.
What Does The Future Of The Canadian Property Market Look Like?
