Real estate prices are likely to stagnate this fall due to high interest rates

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A new report predicts the Canadian real estate market will be weaker this fall and average home prices are expected to remain flat.

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In its fall housing market outlook, Re/Max Canada says the forecast comes as the housing market struggles with high interest rates and a shortage of homes for sale.

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According to an online survey, 33 per cent of Canadians looking to buy and/or sell a home in the next 12 months would wait and see how interest rate changes affect them before purchasing, according to the report.

Mortgage rates have risen sharply as the Bank of Canada raised interest rates to bring inflation under control and back to its two percent target.

Bucking the general trend, Re/Max says there are some outliers where home prices are expected to rise, including larger markets like the Greater Toronto Area, Calgary and Sudbury, Ontario.

The online survey of 1,517 Canadians was conducted by Leger between July 21 and 23.

No margin of error can be assigned to the survey because online surveys are not truly random samples.