Royal LePage predicts that the total value of Canadian homes will fall 1% to $765,171 by the fourth quarter of 2023.
The real estate company said it expects prices to level off in the second quarter before rising moderately in the second half of the year before trending upwards through 2023.
Its calculations show that the median price of a single-family detached home will drop 2 percent to $781,256 by the end of next year, and condos will slip 1 percent to $568,933.
Royal LePage attributes its forecast to declining affordability, exacerbated by rising interest rates and a persistent housing shortage, which acts like a bottom line for falling house prices.
It expects Vancouver homes to remain the most expensive in 2023, falling just 1 per cent next year to more than $1.2 million. Regina will be the most affordable place in its research universe by the end of 2023, as total home prices will drop 1.5% to $361,495.
The Canadian Real Estate Association previously forecast home prices to rise 0.2% in 2023 to $721.814 in 2023.