A new report from TD Economics predicts Canada will see the weakest level of Sell house since 2001 this year.
The housing market outlook from economist Rishi Sondhi says affordability projections are the worst since the late 80s and early 90s.
Sondhi forecasts that home sales will bottom out around early 2023, after falling 20% from peak to trough.
TD also sees median house prices in Canada bottoming out earlier this year.
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Sondhi said average annual prices will fall sharply in most of the Atlantic provinces, Ontario and BC by 2023, while lower declines will occur across the Prairies as well as in Newfoundland and Labrador.
He added that the possibility of widespread price increases in the region is possible in 2024.
“However, we expect some mild outperformance in the Prairies and Newfoundland and Labrador as those markets continue to benefit from a favorable affordability gap. Conversely, tougher affordability conditions in Ontario, BC and across much of the Atlantic will limit growth,” he said.
The Real Estate Association of Canada last month said the national median real home price was $632,802 in November, down 12% from the same month last year.
November home sales totaled 30,135, down 39% from a year ago.
With files from Global News
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