[Harvey Specter]

I haven't noticed many homes that were purchased over the past 2 years getting listed meaning investors are still holding but the question is how long can they hold if rates stay elevated?

And here's an article from today...

Canadian Economists Overwhelmingly Predict Property Price Declines for 2023

That brings us to the real estate market. Nearly all experts — 88% — predicted a decline in real estate prices in 2023. Most (55%) believe the country’s home prices will drop 10% annually by end of 2023. One expert anticipates a 15% drop by the end of the year. The average price of a Canadian home sold in January was $612,204, marking a year-over-year decline of more than 18%, according to the Canadian Real Estates Association.

As Carl Gomez, Chief Economist and Head of Market Analytics for CoStar Canada explains, “With pent up demand among both buyers and sellers further adjustments to prices may be required to get the market moving.”

Lander notes that the supply-side of housing — or lack there of it — is currently keeping prices higher, despite rapid rate hikes over the last year. “Housing prices should fall a lot more, but supply remains constrained thanks to overly restrictive zoning laws in many Canadian municipalities,” says Lander. “Once people readjust to the higher interest rates, demand will recover and limit the fall in prices.”

Furthermore, 100% of experts believe that insolvencies will keep rising in 2023, particularly among homeowners. “Households and businesses have been forced to incur a lot of debt,” says Nikola Gradojevic, Professor of Finance at the University of Guelph. “It is difficult to maintain the same living standard with almost no salary increments amidst rampant inflation. Utility and grocery bills are out of control.”

For some households, it may be too much to handle. “When variable rate mortgages renew, some households will be squeezed enough [to result in] forced selling [of their home],” said Sherry S. Cooper, Chief Economist for Dominion Lending Centres.

https://storeys.com/canadian-economi...declines-2023/