Home prices to fall further but playing the long game means yields

Halifax, NS (+1.5%), Moncton, NB (+6%) and St. John’s, NL (+7%) should all see solid gains, while Charlottetown, PEI, is the only market where sale prices are likely to fall 2% on average.

Long-term investment

The remainder of 2022 will not be good news for many homeowners with the Leger survey behind the report showing that 44% of respondents will be putting homebuying on hold due to interest rates.

But Christopher Alexander, president at RE/MAX Canada, is confident that things will improve, noting that the current lull is only temporary.

“While we are still facing significant housing supply shortages across the country, many markets are experiencing softer sales activity given recent interest rate hikes,” he said. “This provides some reprieve from the unprecedented demand and unsustainable price increases we’ve seen across Canada through 2021 and in early 2022. Until housing supply increases, these ‘boom’ and ‘bust’ cycles will likely be a recurring event.”