TD Bank sees up to 25% drop in Canadian home prices by early 2023

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The TD Bank's latest housing outlook calls for a recalibration of the market.

The bank's economists are estimating the average price of a home could fall 20 to 25 per cent by the first quarter of next year, down from peak levels earlier this year.

That would only partly claw back the 46 per cent gain in prices since the pandemic started.

TD is also projecting the number of home sales will fall 35 per cent.