House prices in Canada are expected to continue to decline in the new year.

A report from Royal LePage is forecasting the aggregate price of a home in Canada will drop by one per cent to $765,171 by the fourth quarter of 2023.

Calculations in the report show the median price of a single-family detached property will fall by two per cent to $781,256 and condominiums will slide one per cent to $568,933 by the end of next year.

Royal LePage experts attribute their predictions to declining affordability, which has been exacerbated by rising interest rates, along with continued housing supply shortages.

Vancouver is expected to remain the most expensive Canadian city to buy a home in 2023, dipping only one per cent next year to more than $1.2 million.

Regina will be the most affordable as aggregate home prices will fall 1.5 per cent to $361,495 by the end of 2023.