Will Canada's housing market crash in 2023?

Canada’s housing market is correcting in 2023, as buyers readjust to higher mortgage interest rates. Sales and price declines should flatten out, and eventually reverse, once interest rates come back down. High demand for housing and a low supply of homes for sale should keep the market from an all-out crash.

What happened to inflation in Canada in July 2022?

Inflation in Canada, as measured by the consumer prices index ( CPI ), was 7.6% in July 2022, a slight comedown on the 8.1% high of June, as shown by BoC data . Canada's central bank has embarked on a schedule of interest rate rises designed to slow price rises, bumping up the cost of borrowing from a record low of close to zero in 2020.

What was Canada's last housing crash?

Canada’s last housing crash, which lasted roughly from 1989 to 1995, wasn’t as catastrophic, but it hit certain markets especially hard. By August 1993, the average home price in Toronto, for example, had dropped by 28% from its April 1989 peak, bottoming out at $189,000. What would a Canadian housing crash look like?

Does Canada have a real estate crash?

There’s no fixed definition for a real estate crash, but recent crashes in Canada and the U.S. have seen home prices drop by double-digits and remain suppressed for several years as buyers avoid what they see as a risky market. Will Canada’s housing market crash in 2023?