If you’re worried about dropping real estate values, you can take comfort in a report from Royal LePage. It predicts that the number of sales and average home prices will only suffer single-digit declines. In other words, Canada’s largest realty franchiser is expecting a correction, not a U.S.-style collapse.
Nationally, the average house price is forecast to dip to $295,000, down from $304,000 in 2008. Here in Toronto, prices are expected to drop a bit more than average — four percent to an average of nearly $365,000.
The steepest price decline — nine percent — is foreseen for Vancouver, which is Canada’s most expensive city. And mid-sized cities with low prices, like Regina and Winnipeg, are expected to see moderate increases.
These predictions are in line with an earlier forecast from Re/Max. But Royal lePage was off the mark when it looked ahead to this year. A year ago, it called for a 3.5 percent average price increase across the country.
But preliminary numbers show there was actually a 1.1 percent decline.