The Bank of Canada had a significant impact on the Canadian Housing Market this year.
Their goal to lower inflation resulted in several rate increases throughout 2022 making the dream of homeownership more difficult to achieve for some.
Many millennials, families new to Canada and self-employed Canadians are trying to figure out what their homeownership journey will look like in 2023.
We’ve researched what some of the experts are saying to try and give you an idea of what the Canadian Housing Market in 2023 might resemble.
The Canadian Real Estate Association’s (CREA) senior economist, Shaun Cathcart, broke down how he foresees the Canadian Housing Market in 2023 in an interview.
Shaun stated that “… as far as getting back to “normal”, the (biggest) question for housing markets is not as much where the top (interest rate) will be, how long it will stay there, or when will rates start coming back down?”
He continued to say that the focus for 2023 for future homeowners will be, “when will rates be back at lower levels?”
Shaun’s projections also touched on what the Bank of Canada’s path forward may look like.
He mentioned, “the Bank (of Canada) doesn’t say what they think the path for interest rates will look like, but they do have a forecast for inflation, and inflation is what guides their interest rate decisions.”
“They currently project inflation will be back at around 3% (year-over-year) by the end of 2023 and to fully return to the 2% target by the end of 2024.”
Deciding when the best time to buy a home can be a tricky question.
According to a Global News article, RBC’s assistant chief economist, Robert Hogue, stated that “with the slowing pace of decline in both home sales and prices, there are ‘early signs the correction is approaching its final stage’.”
“He said prices could eventually hit a low point in ‘the early part of 2023’, but cautioned the timing would vary from market to market.”
“Hogue suggested this bottoming out would coincide with the Bank of Canada stabilizing its benchmark interest rate—the central bank signaled in December it could be near the end of its hiking cycle—and that for those looking to break into the market, this might be where affordability is best in the year for prospective buyers.”
Homeownership in 2023
While these projections may give a glimpse into an end in sight for rate increases, they cannot confirm if, or when, they will go down back down.
For those that are ready to start the homeowner journey, or are simply unable to stay in the rental market, the Bridge to Homeownership™ Program (BTHO) might be for you.
Our program offers newly-built and like-new homes in the all of Alberta..
We strive to make a meaningful positive impact in the community by giving everyday people who have the mindset to be homeowners an opportunity they otherwise wouldn’t have.
If you have zero down payment, are new to Canada with no established credit history or are self-employed, we may be able to help you on your homeownership journey.
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