TORONTO — A new report from TD Economics predicts Canada will see the weakest level of home sales since 2001 this year.

The housing market outlook from economist Rishi Sondhi attributes the prediction to the poorest affordability level since the late 80s and early 90s.

Sondhi is forecasting that home sales will reach their bottom sometime in early 2023, after declining 20% from peak to trough.

He says steep annual average price declines are expected in most of the Atlantic provinces, Ontario and BC in 2023, while lesser drops will materialize across the Prairies and in Newfoundland and Labrador.

The Canadian Real Estate Association said last month that the actual national average home price was $632,802 in November, a 12% decline from the same month last year.

November home sales totalled 30,135, a 39% drop from a year prior.

TD Report : Canada will See Weakest Level of Homes Sales Since 2001 This Year by The Canadian Press | BIV