TD Bank forecasts a 10% reduction in Canadian housing prices.

By: 600011 On: Nov 24, 2023, 5:07 PM

One of the largest banks, TD Bank, predicts that home prices in several Canadian real estate markets will decrease dramatically due to a spike in supply. According to TD Bank, property prices would tumble 10% during the first half of next year. In September, the drop was 5%. According to TD Bank economists, the bank's reduced bond-yield projection and higher-than-expected sales in the BC and Ontario housing markets led to the drop in home prices.

They demonstrate that a quick increase in supply leads to a longer-term fall in sales. Even a 10% decline in average housing prices would leave them 15% higher than pre-Covid pandemic levels. However, predictions of a rate drop by the Bank of Canada by the end of the second quarter of next year are projected to stem the price decline.