Canadian home prices are down year-over-year for the first time since 2008, according to a new report.

But Royal LePage said prices still remain considerably higher than what they were before the pandemic.

The company’s latest house price survey showed prices fell 2.8 per cent year-over-year in the fourth quarter to an average of $757,100.

That is also 2.3 per cent lower on a quarter-over-quarter basis, marking the third consecutive quarterly decline.

“Activity levels were down sharply compared to the hypercharged state we experienced during the pandemic, with home prices flattening or showing modest declines,” president and CEO Phil Soper said in a news release.

But while red-hot market conditions are behind us, Soper said there remains a widespread shortage of homes in Canada that cannot be offset by temporarily cooling demand.

Royal LePage said several factors will continue to support home prices, including record immigration rates, high employment levels, and strong household savings.

“While demand has slowed in this rising interest rate environment, we know that many families waiting on the sidelines have the capacity to buy and have chosen not to, waiting for conditions to stabilize,” said Soper.

“Soon enough, these buyers will return to the market and will be met, once again, with the realities of low inventory and much competition.”

And Soper said he expects many of these buyers will be back much sooner than many analysts are predicting.

Home prices for several markets across Canada can be found by clicking here.