Contrary to Canada’s large urban centres, major cities in Alberta and Atlantic Canada are expected to see home price growth in 2023.
In its annual Market Survey Forecast, Royal LePage predicts that the aggregate price of a home in Canada will decrease 1.0% year-over-year to $765,171 in the fourth quarter of 2023, with five of the major regions surveyed expected to see aggregate price declines. The four regions where prices are forecast to increase – Calgary, Edmonton, Ottawa and Halifax – are among the more affordable cities in Canada, and have proven to be top destinations for Canadians seeking more affordable housing options.
Enabled by remote working opportunities during the COVID-19 pandemic and beyond, the number of buyers relocating out of the major urban centres has accelerated over the last two years. Now faced with higher borrowing costs and living expenses, it is expected that buyer hopefuls from Ontario and British Columbia will continue to seek out affordable housing options in cities like Calgary, Edmonton and Halifax. Price growth in Calgary, Ottawa and Halifax in the fourth quarter of 2023 is expected to be led by the more affordable condominium segment. Ottawa, with its healthy employment market, relatively affordable housing and continued positive net migration, is also expected to see positive price appreciation next year.