(Toronto) The number of new listings for sale in the Canadian housing market is expected to fall in the first quarter, before rebounding later in the year and slowing to a more modest pace of growth in 2024, suggests a new report.
In his paper, economist Rishi Sondhi of TD Economics predicted that weak sales and falling prices would lead to lower for-sale listings in the first quarter of 2023.
Mr. Sondhi then sees registrations increasing by 7% between the second and fourth quarters, before slowing to a growth rate of around 2% in 2024.
While predicting some near-term weakness, the economist also sees growing demand keeping markets balanced and supporting positive house price growth, especially in the second half of this year.
However, he notes that there is a risk that supply will rise more sharply than expected as homeowners face record debt-servicing costs.
The Canadian Real Estate Association predicts residential property sales will rise 10.2% in 2024 as markets continue to return to normal. It further expects the national average home price to rise 3.5% from 2023 to 2024 to around $685,056, which would be below its 2022 level but back to 2021 levels.