Why it might be several years before homes are more affordable in Canada

It may be several years yet before home prices fall back into an affordable range for the average Canadian, according to Oxford Economics.

Tony Stillo, director of economics for Canada for the research firm, told BNN Bloomberg this week that home prices may get “a little worse” before starting to come down later in 2023.

After that, homes probably won’t hit a reasonably affordable level until around 2027, he said, once interest rates and prices have time to come down and incomes have risen.

“It’s going to take a while. We don't think housing will become within the reach of the Canada-wide average household until 2027,” he said. “It’ll be some time, unfortunately.”