Top three affordable regions in Canada where homes go for below $300,000
In an increasingly complex world, the Financial Post should be the first place you look for answers. Our FP Answers initiative puts readers in the driver’s seat: you submit questions and our reporters find answers not just for you, but for all our readers. Today, we answer a question from Brian about real estate.
Canadian real estate has soared in value since 2020, with the pandemic, low interest rates and fear of missing out (FOMO) propelling home prices to record levels and pricing many potential home buyers out of the market.
Although the Canadian Real Estate Association (CREA) reported home sales fell by 5.6 per cent in June from the month before, the national average home price was only down 1.8 per cent to $665,580 from the same month last year, despite rising interest rates and tighter borrowing conditions today.
Elevated prices in Toronto and Vancouver continue to drive the high national average, but many smaller neighbouring cities offer more affordable prices. You can still find value in real estate if you know exactly where to look.
Zoocasa Realty Inc. analyzed 25 regional housing markets and ranked every market by its annual rate of growth in average home prices. The online broker then determined where the average price stood compared to the national average, and identified the 10 most affordable regions and homes you can buy there.
The Saguenay, Que., region tops the list for most affordable housing, with an average home price of $267,353 and annual price growth of 6.6 per cent from last June. Newfoundland and Labrador, where the average regional home price is $280,200 with an annual growth of 10.8 per cent , came second. Saint John, N.B., holds third spot, with an average home cost of $294,900 and an annual growth rate of 30.1 per cent.
Zoocasa spokesperson Patti Cosgarea said she was surprised by how many markets are below the national average. Canadians should continue to see prices decline as the Bank of Canada raises rates.
Some people may choose to wait on the sidelines as the market slows in the face of rising rates, CREA chair Jill Oudil said in the association’s June statistics report.
But should potential home buyers wait for prices to drop even further in case a dramatic decline in the housing market plays out?
Not according to Prof. Jill Grant who researches housing and cities at Dalhousie University’s School of Planning in Halifax. Grant predicts that housing will not return to pre-pandemic levels soon because of a lack of supply.
Canadians are forming more households as families get smaller and more people live alone, and housing supply in Canada has not kept up with that demand, Grant said.
No one can predict how high interest rates may rise nor the resulting decline in home prices. But since prices have fallen from their February highs, and supply remains tight, now may be as good a time as any to buy a new home.
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TORONTO – The Toronto Regional Real Estate Board says home sales in October surged as buyers continued moving off the sidelines amid lower interest rates.
The board said 6,658 homes changed hands last month in the Greater Toronto Area, up 44.4 per cent compared with 4,611 in the same month last year. Sales were up 14 per cent from September on a seasonally adjusted basis.
The average selling price was up 1.1 per cent compared with a year earlier at $1,135,215. The composite benchmark price, meant to represent the typical home, was down 3.3 per cent year-over-year.
“While we are still early in the Bank of Canada’s rate cutting cycle, it definitely does appear that an increasing number of buyers moved off the sidelines and back into the marketplace in October,” said TRREB president Jennifer Pearce in a news release.
“The positive affordability picture brought about by lower borrowing costs and relatively flat home prices prompted this improvement in market activity.”
The Bank of Canada has slashed its key interest rate four times since June, including a half-percentage point cut on Oct. 23. The rate now stands at 3.75 per cent, down from the high of five per cent that deterred many would-be buyers from the housing market.
New listings last month totalled 15,328, up 4.3 per cent from a year earlier.
In the City of Toronto, there were 2,509 sales last month, a 37.6 per cent jump from October 2023. Throughout the rest of the GTA, home sales rose 48.9 per cent to 4,149.
The sales uptick is encouraging, said Cameron Forbes, general manager and broker for Re/Max Realtron Realty Inc., who added the figures for October were stronger than he anticipated.
“I thought they’d be up for sure, but not necessarily that much,” said Forbes.
“Obviously, the 50 basis points was certainly a great move in the right direction. I just thought it would take more to get things going.”
He said it shows confidence in the market is returning faster than expected, especially among existing homeowners looking for a new property.
“The average consumer who’s employed and may have been able to get some increases in their wages over the last little bit to make up some ground with inflation, I think they’re confident, so they’re looking in the market.
“The conditions are nice because you’ve got a little more time, you’ve got more choice, you’ve got fewer other buyers to compete against.”
All property types saw more sales in October compared with a year ago throughout the GTA.
Townhouses led the surge with 56.8 per cent more sales, followed by detached homes at 46.6 per cent and semi-detached homes at 44 per cent. There were 33.4 per cent more condos that changed hands year-over-year.
“Market conditions did tighten in October, but there is still a lot of inventory and therefore choice for homebuyers,” said TRREB chief market analyst Jason Mercer.
“This choice will keep home price growth moderate over the next few months. However, as inventory is absorbed and home construction continues to lag population growth, selling price growth will accelerate, likely as we move through the spring of 2025.”
This report by The Canadian Press was first published Nov. 6, 2024.
The Canadian Press. All rights reserved.
HALIFAX – A village of tiny homes is set to open next month in a Halifax suburb, the latest project by the provincial government to address homelessness.
Located in Lower Sackville, N.S., the tiny home community will house up to 34 people when the first 26 units open Nov. 4.
Another 35 people are scheduled to move in when construction on another 29 units should be complete in December, under a partnership between the province, the Halifax Regional Municipality, United Way Halifax, The Shaw Group and Dexter Construction.
The province invested $9.4 million to build the village and will contribute $935,000 annually for operating costs.
Residents have been chosen from a list of people experiencing homelessness maintained by the Affordable Housing Association of Nova Scotia.
They will pay rent that is tied to their income for a unit that is fully furnished with a private bathroom, shower and a kitchen equipped with a cooktop, small fridge and microwave.
The Atlantic Community Shelters Society will also provide support to residents, ranging from counselling and mental health supports to employment and educational services.
This report by The Canadian Press was first published Oct. 24, 2024.
The Canadian Press. All rights reserved.
Housing affordability is a key issue in the provincial election campaign in British Columbia, particularly in major centres.
Here are some statistics about housing in B.C. from the Canada Mortgage and Housing Corporation’s 2024 Rental Market Report, issued in January, and the B.C. Real Estate Association’s August 2024 report.
Average residential home price in B.C.: $938,500
Average price in greater Vancouver (2024 year to date): $1,304,438
Average price in greater Victoria (2024 year to date): $979,103
Average price in the Okanagan (2024 year to date): $748,015
Average two-bedroom purpose-built rental in Vancouver: $2,181
Average two-bedroom purpose-built rental in Victoria: $1,839
Average two-bedroom purpose-built rental in Canada: $1,359
Rental vacancy rate in Vancouver: 0.9 per cent
How much more do new renters in Vancouver pay compared with renters who have occupied their home for at least a year: 27 per cent
This report by The Canadian Press was first published Oct. 17, 2024.
The Canadian Press. All rights reserved.
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