TD Bank Forecasts 10% Drop in Canadian Home Prices by 2023 Amid Rising Rates and Supply
• TD Bank doubles its forecast for the drop in Canadian home prices to 10% by early 2023 due to higher interest rates and a surge in housing supply
• October home sales fell 5.6% monthly according to the Canadian Real Estate Association, though prices were still up 1.8% annually
• Bank of Canada Governor says high inflation is easing and higher rates are "squeezing" Canadians but should achieve price stability
• TD economists expect job markets to "bend but not break" limiting forced home sales, though risks remain of weaker growth or higher rates
• Average home prices are still 15% higher than pre-pandemic, but could fall further if supply rises or rates go higher than expected