Skip to main content

Scroll Down

Special Report

Canada Housing Research Brief

December 2022

Heightened Interest Rates not Impacting the
Housing Market at a Magnitude Some Feared

Housing correction transitioning to stabilization. In November, the median single-family home price in Canada fell 1.6 per cent month-over-month, down 12.8 per cent from the February peak. While rising interest rates have caused housing prices and sales to decline, the overall impact has been less severe than some expected. The total number of newly-added listings in November continued to track down and are 12 per cent lower than before the Bank of Canada began its tightening cycle, helping soften the pace of price drops. This trend suggests that elevated borrowing costs have not yet caused widespread forced sales, and that price corrections may soon be over. Not all downward pricing pressures are abating, however. The inventory of homes for sale remains on the rise, and while it has only climbed back to the pre-pandemic level, sales times continue to lengthen as elevated borrowing costs soften demand. Nonetheless, with interest rate hikes possibly nearing an end, Canada’s housing market correction could stabilize over the coming months.

Related Research

Back to top