Is the Housing Market Bubble Bursting?

Ontario’s housing market’s hot streak may officially come to an end in 2023, though declines in home prices next year are expected to be more pronounced in some areas of the province than others.

Housing market price drop in Ontario

According to the new RE/MAX 2023 Canadian Housing Market Outlook Report, the Eastern 905 area of Durham Region — which includes the city of Pickering, the town of Ajax and the township of Uxbridge — will experience a decline in average home prices exceeding the $100K mark.

RE/MAX Canada projects Durham’s market conditions to balance out next year after a dismal 2022.

Durham homeowners can expect a current sellers’ market to persist into the coming year, though factors like rising interest rates should counteract any momentum and keep the market balanced — an almost unprecedented claim in Ontario real estate.

The average 2023 home price in the region is forecast to dip to $935,303.40, a sharp decline of $103,922.60 from the 2022 average (covering January through October 31, 2022) of $1,039,226.

READ MORE: How much money you need to earn to afford a home in Toronto?

RE/MAX states in its report that “continued cooling is expected, with sellers feeling the pressure of rising interest rates – something that will benefit buyers and investors.”

As substantial as this decline is, it’s considered an improvement from the tailspin in home prices recorded the year before, when average prices in Durham fell by a shocking $281,337, from a high of $1,175,010 at the start of the year.

Despite the projected price correction, RE/MAX expects that home sales in the region are expected to decline by 10 per cent in the new year.

RE/MAX based its analysis on consumer data sourced through a Leger survey of 1,544 Canadians between November 4-6, 2022.


READ MORE: Toronto the bubbliest City for housing market in the World!

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