After fuelling Canada91裸聊视频檚 economy through the COVID-19 pandemic, the real estate market is showing signs of weakness as home prices fall and bidding wars dissipate.

It91裸聊视频檚 welcome news for prospective buyers hoping for a better price. But as the busy fall season nears, realtors and economists are at odds over how long the pricing slide will last and how low it will go.

91裸聊视频淭he fall is going to be interesting because we91裸聊视频檙e going to see probably more buyers jumping into the market and you don91裸聊视频檛 need a ton more buyers to provide a little bit more stability to prices,91裸聊视频� said John Pasalis, president of Realosophy Realty Inc. in Toronto.

91裸聊视频淛ust a little bit of a bump in demand could be the difference between homes selling in three, four weeks versus selling in two weeks or selling a lot faster.91裸聊视频�

The average home price is still above pre-pandemic levels, but increasing mortgage rates and inflationary pressures are weighing on the market.

When pandemic lockdowns began in March 2020, the Toronto Regional Real Estate Board said the average home price in the area 91裸聊视频� one of Canada91裸聊视频檚 hottest 91裸聊视频� sat at $902,680. Last month, it was $1,074,754, a one per cent hike from July 2021, but a six per cent drop from June 2022.

The latest data from the Canadian Real Estate Association (CREA) showed prices hit $629,971 in July, down five per cent from $662,924 last July. On a seasonally adjusted basis, it amounted to $650,760, a three per cent drop from June. When pandemic lockdowns began in March 2020, the average national price was $543,920.

The association forecast the national average home price will rise by 10.8 per cent on an annual basis to $762,386 by the end of 2022 and hit $786,252 in 2023.

But some economists are anticipating an even greater price reduction.

In June, a trio of Desjardins economists said they expected the average national home price to fall by 15 per cent between its February high 91裸聊视频� $817,253 91裸聊视频� and the end of 2023, but because 91裸聊视频渨e91裸聊视频檙e almost there,91裸聊视频� they adjusted their forecast in August to predict a drop between 20 and 25 per cent.

91裸聊视频淗ome prices continue to fall and have further to go before they find a bottom,91裸聊视频� said Randall Bartlett, H茅l猫ne B茅gin and Marc Desormeaux, in a report released July 11.

91裸聊视频淭hat said, we still believe home prices will end 2023 above pre-pandemic levels nationally and in all 10 provinces.91裸聊视频�

In anticipation of a drop in prices, agents have noticed prospective buyers sitting on the sidelines of the market in recent months, while sellers come to terms with the fact that their homes won91裸聊视频檛 fetch as much money as they would have at the start of the year.

Lori Fralic calls it a 91裸聊视频渟talemate.91裸聊视频�

91裸聊视频淲e are seeing lowball offers,91裸聊视频� said the Vancouver agent with Keller Williams Realty VanCentral.

91裸聊视频淭here91裸聊视频檚 lots of bargain hunters out there who are throwing out offers but if they don91裸聊视频檛 have to sell, a lot of sellers are saying, 91裸聊视频榥o, sorry, not taking it.91裸聊视频�

It91裸聊视频檚 a change from the torrid pace of sales and frenzied bidding wars seen earlier in the year and late last year.

Much of the shift is attributable to mortgage rates, which mirror fluctuations in interests rates and can eat into buying power.

The Bank of Canada increased its key interest rate by one percentage point to 2.5 per cent in July in the largest hike the country has seen in 24 years.

Economists foresee the increases continuing and Fralic said they91裸聊视频檙e already encouraging people who don91裸聊视频檛 need to buy immediately to hold off.

She91裸聊视频檚 seen a drop in prices in B.C., but said it91裸聊视频檚 not as much of a decrease as many expected.

91裸聊视频淚f people are thinking (prices) are going to plummet, I don91裸聊视频檛 think that91裸聊视频檚 accurate,91裸聊视频� she said.

91裸聊视频淚f you look at the 10-year average of Metro Vancouver, housing prices are way up and if they do dip, they might dip slightly and come back up. There91裸聊视频檚 always been sort of a steady incline with dips along the way.91裸聊视频�

The Real Estate Board of Greater Vancouver said the composite benchmark price for the region 91裸聊视频� often Canada91裸聊视频檚 hottest 91裸聊视频� sat at more than $1.2 million in July, a roughly 10 per cent increase from July 2021 and a two per cent drop from June 2022.

91裸聊视频淚t91裸聊视频檚 anyone91裸聊视频檚 guess how much prices will fall,91裸聊视频� Sherry Cooper, chief economist at Dominion Lending Centres, said.

Markets, she said, tend to be very localized and the surges or drops some see may not be mimicked in others.

For example, she said Alberta has not seen the slowdown many other Canadian markets have because its energy sector is much stronger than it was in the past.

But Cooper noted home sales activity have declined very sharply in the Greater Toronto Area, the Greater Golden Horseshoe Area and in parts of British Columbia around Vancouver.

91裸聊视频淚t91裸聊视频檚 the markets that experienced the 50 per cent increase in home prices that have seen the biggest correction, and that91裸聊视频檚 what you91裸聊视频檇 expect because those are the most expensive homes in Canada with the largest outstanding mortgages.91裸聊视频�

91裸聊视频擳ara Deschamps, The Canadian Press