TD Bank has revised its forecast for Canadian home prices, expecting a 10% drop by the first quarter of 2024, double its previous estimate. This comes as a result of the highest interest rates the country has seen in years, leading to fewer buyers and more homes on the market. The situation is particularly noticeable in Ontario, where the sales-to-new listings ratio has significantly decreased.

Despite this downturn, average home prices are still projected to be 15% above pre-pandemic levels. Moreover, with expectations of interest rate cuts next year, sharper declines may be avoided.

This fluctuation may add complexity to the market but offers new opportunities for home buyers and investors. As always, staying informed and agile is critical in navigating these changing tides in real estate.