Real estate experts have been predicting how the Canadian housing market will fare in 2023 since the beginning of 2021. With current trends pointing towards a steady increase in home sales, it’s no wonder that many are eager to know what the future holds. With new trends and economic shifts, the landscape of home sales can be difficult to predict. In this blog post, we'll take a closer look at why home sales are expected to continue to rise over the next few years, and what buyers and sellers can expect from the markets in 2023.
How We Got Here
Before we can look into the future, it’s important to understand how we got here. The Canadian housing market has seen an unprecedented surge over the past year due to both COVID-19 safety measures and continued population growth across Canada. Low interest rates have also made it easier for buyers to purchase homes, leading to an influx of both first-time buyers and investors looking to capitalize on hot markets across the country. With inflation expected to remain low and interest rates likely to stay steady or even drop slightly in 2023, we can expect to see home prices remain relatively consistent with 2020 levels. In other words, don’t expect any major changes in terms of home prices next year.
Supply and Demand
Another key factor when it comes to predicting real estate trends is looking at supply and demand. As of right now, demand for housing has been on an upward trend since 2018, but supply has not been able to keep up with this increase in demand. This means that it is likely that there will continue to be a shortage of homes available for sale in 2023, leading to higher prices for buyers who are able to find a home they want.
Mortgage Rates
Interest rates have been quite low throughout 2020, but they are expected to start increasing again in 2021 and into 2022 as the economy recovers from the COVID-19 pandemic. This means that buyers should prepare for slightly higher mortgage rates by 2023, which could lead them to reassess their budgets or even opt out of buying altogether if rates become too high for them.
What To Expect In 2023
The outlook for 2023 is generally positive for buyers and sellers alike. Experts predict that there will be a slight shift away from city centres as more people move out of urban areas into rural or suburban areas; however, real estate prices are still expected to remain high with continued demand resulting in healthy competition between buyers. This means that sellers should expect offers above asking price while buyers should prepare their budgets accordingly—but don’t let that deter you! Even with higher entry costs, there are still plenty of ways for savvy investors or first-time buyers can find great deals in competitive markets.
Overall, 2023 is shaping up to be an exciting year for real estate in Canada. With increasing demand and rising prices across most regions, now is the time for prospective buyers or investors looking to get into the market before prices reach their peak. It's also important to note that there are still plenty of opportunities for those who play their cards right—so make sure you do your research before jumping into any deals! With all this information at hand, we hope you feel better prepared for your next real estate venture whatever it may be! Good luck!
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