female homebuyer shakes hand with real estate agent in office

A new report predicts average home sale prices in Canada will fall 3.3% next year with the biggest declines expected in Ontario and Western Canada where some markets may see prices fall 10 to 15%.

The report by Re/Max Canada made the forecast using surveys of brokers and agents from across the country. Home prices in Canada have fallen this year as the real estate market has cooled amid higher interest rates that have increased the cost of mortgages for borrowers.

Re/Max says 60% of housing markets in Canada are expected to be in a balanced position in 2023, however some markets are expected to see larger moves in prices.

Prices in Kelowna, B.C., Nanaimo, B.C., and Durham, Ont., are predicted to drop 10% in 2023, while prices in Barrie, Ont., are expected to fall 15%.

Prices in the Greater Toronto Area are estimated to fall 11.8%, while Greater Vancouver is expected to decline 5.0%.

Meanwhile, Calgary is expected to see a 7.0% increase in sale prices and Edmonton is forecast for a 3.0% gain. Halifax is expected to gain 8.0%.