Posthaste: Home prices in Canada not done falling from 2022 peak, says TD report

Economist Rishi Sondhi said the average price of a house is likely to drop by 21 per cent in all before the market bottoms. But that won’t be enough to wipe out the gains made during the height of the housing market, which peaked in February 2022.

“All told, Canadian average home prices will have likely fallen by 21 per cent on a peak-to-trough basis, retracing less than half of the 47 per cent gain recorded during the pandemic,” he said in the report released on April 4.

TD said further drops to prices will come as a result of “looser-than-normal conditions” in Ontario and British Columbia, Canada’s real estate powerhouses. Atlantic Canada will also see prices fall for most of the year, as fewer people move to the East Coast and the housing market comes off of “outsized, pandemic-era gains,” Sondhi said. Prices in Quebec and the Prairies are likely to be more resilient, thanks to tight markets in the former and strong demand in the latter.