It goes without saying that 2022 was a rather tumultuous year for the residential real estate market. Inflation, rising interest rates, erosion of housing affordability, several phenomena have had direct and indirect impacts on the real estate market, for both buyers and sellers.

What can we expect in 2023?

Reduced buying power

Inflation is affecting the wallets of all Quebecers. With sharply rising expenses at the grocery store, restaurants, gas stations, and everywhere else, the purchasing power of individuals is greatly affected. Borrowing capacity is thus reduced due to the key interest rate, which is at its highest point since 2008. Indeed, the Bank of Canada has raised its key interest rate no less than seven times in the past year.

Sales stability, price decrease

For 2022 alone, real estate sales declined by 21.3%, and mortgages by 15.2% 1. Despite a trend towards a rebalancing of the market to the pre-pandemic level, real estate activity remains relatively high. After a significant decline in 2022, property sales should tend to stabilize towards the end of 2023, before starting to rise again in 2024.

According to forecasts by some economists, a price drop should be felt in the markets over the coming year. Since fewer people will be able to afford property, the number of buyers will decrease, leading to a price decline.

Despite this anticipated decline, market access will remain difficult for households in 2023. Indeed, interest rates will remain high for quite some time.

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More affordable housing

Generally speaking, housing affordability should improve over the coming months, particularly in the Edmonton, Calgary, and Winnipeg regions. Less strongly, housing affordability in the provinces of Ontario and Quebec should also gradually improve.

Solutions to address this

Working with a Proprio Direct real estate broker remains the best possible way to navigate the many changes coming in 2023. Now more than ever, Proprio Direct real estate brokers skillfully navigate market fluctuations to ensure you complete a transaction to your satisfaction. They are sales experts who provide you with access to a wide range of professional housing services

See for yourself!

*Gouvernement du Québec, statistiques sur le marché immobilier : https://www.quebec.ca/habitation-et-logement/information-fonciere/statistiques-marche-immobilier