Concept of real estate, mortgage and lease

A new report from TD Economics predicts Canada will see the weakest level of home sales since 2001 this year.

The housing market outlook from economist Rishi Sondhi attributes the prediction to the poorest affordability level since the late 1980s and early 1990s.

Sondhi is forecasting that home prices will reach their bottom sometime in early 2023, after declining 20% from peak to trough.

He said steep annual average price declines are expected in most of the Atlantic provinces, Ontario and B.C. in 2023, while lesser drops will materialize across the Prairies and in Newfoundland and Labrador.

The Canadian Real Estate Association said last month that the national average home price was $632,802 in November, a 12% decline from the same month last year.

November home sales totalled 30,135, a 39% drop from a year prior.