The Market Has Turned: Home Prices Will Continue to Fall in Quebec and Ontario

The housing market rolled over this spring. High prices and rising mortgage rates have eroded affordability, sales are down and inventory is on the rise. As a result, we’ve quickly gone from a seller’s market to balanced territory. Buyers are waiting on the sidelines, and in some markets where overbidding was rampant, prices are coming back to earth. By the end of next year, prices are expected to tumble 17% in Quebec and 24% in Ontario. Meanwhile supply shortages, high material costs and rapidly rising interest rates are putting the brakes on new construction and renovation. Look for fewer of these projects in the coming quarters in both provinces.