(Toronto) Royal LePage is cutting expectations for home price growth this year after saying prices fell in the second quarter from the first three months of the year.
Posted at 12:27 p.m.
The real estate brokerage now says it expects the overall price of a home in Canada in the fourth quarter of this year to be up 5.0% from the same quarter in 2021.
That forecast is down from those made in April, which called for a 15.0% year-over-year increase for the fourth quarter.
Royal LePage says it lowered its forecast following larger-than-expected interest rate hikes by the Bank of Canada, which led to an expected temporary drop in demand in parts of southern Ontario and Colombia -British.
In its House Price Study, Royal LePage reports that the overall price of a residential property in Canada in the second quarter was $815,000, up 12.1% from a year ago. However, it was down 4.9% from its record high in the first quarter of this year.
Royal LePage says it was the first quarter in more than three years to show a quarter-over-quarter decline in home prices.
“The effervescence that reigned on the market partially faded during the second quarter. Indeed, rising interest rates and economic uncertainty have dampened consumer confidence and pushed some homebuyers out of the market,” Royal LePage President and CEO Phil Soper said in a statement. communicated.
“We have significantly downgraded our outlook for the end of fiscal 2022. On the other hand, according to our estimates, the price of properties should increase compared to the end of 2021 and exceed pre-pandemic normals. »