Prices could drop 20-25% and “steeper declines are forecast in BC and Ontario while more middle-of-the-road retrenchments are likely in Alberta, Quebec, and the Atlantic Region.”
Manitoba and Saskatchewan should see prices holding up better.
However, all this needs to be considered against the backdrop of the last two years, especially for long-term investors.
National home prices surged during the pandemic and the 25% drop TD’s economist is talking about would only partially erase the 46% gain seen during 2020-2022.
“As such, our forecast can be more aptly described as a recalibration of the market, instead of something more severe,” Sondhi wrote in his report.
