While average home prices across most provinces and territories have cooled considerably since reaching their peak in February, several markets are still seeing prices rise year-over-year.
According to the latest data released by the Canadian Real Estate Association (CREA), major markets such as the Greater Vancouver and Toronto areas, Montreal and Calgary all saw average home prices increase between September 2021 and September 2022. However, smaller real estate markets situated outside of these hubs saw higher annual growth rates by comparison.
This is because rising interest rates have a greater influence on home prices in larger, more expensive markets, said Shaun Cathcart, CREA’s senior economist and director of housing data and market analysis.
“Interest rates have a massively greater impact on places where the price to income ratio is much higher,” Cathcart told CTVNews.ca in an interview on Wednesday. “People need to be borrowing more closely to the limits of the stress test [in more expensive markets].”
Regions that saw home prices balloon during the pandemic, such as Ontario and British Columbia, are now seeing their annual gains shrink as buyers are faced with higher stress test rates, Cathcart said. On the other hand, affordable markets such as the Prairies and Maritimes may not have made the same kinds of gains, but did a better job of holding onto them, he said.
“In some of these more affordable places, [average prices] not only continued to climb for longer in the spring, they’ve also declined by less from then until now,” said Cathcart.
In Victoria, B.C., for example, the average price of a home rose 15 per cent from September 2021 to September 2022. During the same period, average home prices in Saguenay, Que., increased 13.9 per cent. Residents of Yarmouth, N.S., saw the highest annual growth of any real estate market in September 2022 with a rate of 21.7 per cent. These figures are MLS benchmark prices, calculated to reflect price trends based on the majority of homes in a given area.
However, these kinds of price gains are not likely to stick around as rising interest rates continue to drive down home prices, Cathcart said.
“Those year-over-year gains are rapidly shrinking with every month that goes by,” said Cathcart. “[October] might be the last month that you see so many markets that still have year-over-year gains.”
Below is a list of properties CTVNews.ca has gathered that are on sale in markets that have seen some of the highest annual growth rates across the country.
YARMOUTH
(Louisette Higgins, Modern Realty)
Type: House
Price: $339,900
Year Built: 1987
Property Size: 200.67 sq. m
Lot Size: under 0.2 hectares
Price Growth: 21.7 per cent year-over-year
This four-bedroom, two-bathroom home in Yarmouth, N.S., has a fully-fenced backyard, with a new deck and above-ground pool. The main floor has an open-concept living and dining area leading to a kitchen with a breakfast bar. In the basement is a laundry room with access to the backyard, as well as another room that can be used as an office or home gym.
GREATER MONCTON
(Emma Lee Arsenault Photography / Adele Poirier, Keller Williams Capital Realty)
Type: House
Price: $349,900
Year Built: 2007
Property Size: 212.38 sq. m
Lot Size: 322 sq. m
Price Growth: 19.6 per cent year-over-year
Spanning nearly 213 square metres, this two-storey home has three bedrooms and three bathrooms. Hardwood and tile floors run throughout the main level, and the living room includes a propane fireplace. From the dining area, two sliding patio doors lead to a four-season sunroom that can be used year-round. The basement is also completely finished and has a separate side entrance.
ALBERTA WEST
(KLIK Solutions / Lori Gelmici-Hanni, Royal LePage Edson Real Estate)
Type: House
Price: $629,500
Year Built: 2013
Property Size: 147.44 sq. m
Lot Size: 1.59 hectares
Price Growth: 17.7 per cent year-over-year
Laminate flooring and modern finishes run throughout this rural home near Edson, Alta. Designer lighting on the main floor decorates the high ceilings, while the kitchen features granite countertops and an oversized island. Filling the rest of the home are four bedrooms and three bathrooms. A family room occupies the basement, along with a newly renovated bathroom complete with a tiled shower.
VICTORIA
(Spartan Media / Anna Piloyan, Re/Max Camosun Oak Bay)
Type: House
Price: $799,999
Year Built: 1920
Property Size: 89.74 sq. m
Lot Size: 408.77 sq. m
Price Growth: 15 per cent year-over-year
Built in the 1920s, this character home features high ceilings and large windows. The one-storey home also comes with a small, detached garage that can be transformed into a workshop. Perched on a large rock, the house overlooks the Oaklands neighbourhood in Victoria, B.C., and is situated within walking distance of parks, schools and restaurants.
PRINCE EDWARD ISLAND
(Taralynn Arsenault, Palmer Real Estate Group, Keller Williams Select Realty)
Type: House
Price: $399,999
Year Built: 2002
Property Size: 272.39 sq. m
Lot Size: 0.26 hectares
Price Growth: 14.5 per cent year-over-year
This four-bedroom, four-bathroom rural home is located between Charlottetown and Summerside, P.E.I. The secluded lot features patios at the front and back of the house, as well as a gazebo in the backyard. On the main floor is a kitchen, formal dining room, living room and office. The main bedroom on the top floor has an ensuite with a double sink, full shower and separate jet tub.
SAGUENAY
(Saïda Murray, Proprio Direct)
Type: House
Price: $365,000
Year Built: 1974
Property Size: 178.37 sq. m
Lot Size: 0.2 hectares
Price Growth: 13.9 per cent year-over-year
Situated in a quiet neighbourhood in Saguenay, Que., is this four-bedroom, one-bathroom home. The large lot backs onto a forest, and there are no neighbours behind the home. The two-storey house also has a finished basement, and is located near essential amenities as well as the Chicoutimi River.
CALGARY
(Dianne Brown, Re/Max Landan Real Estate)
Type: House
Price: $685,000
Year Built: 1912
Property Size: 79.8 sq. m
Lot Size: 226 sq. m
Price Growth: 11.5 per cent year-over-year
On the main floor of this Calgary home are 10-foot ceilings and a large bay window. The corner lot has one bedroom plus a den, as well as one bathroom. The kitchen features white cabinetry, an exposed brick wall and stainless steel appliances, while the living area has a gas fireplace with a mantle. Oak floors installed when the home was first built in 1912 run across both storeys of the home.
WINDSOR-ESSEX
(Windsor Creative Real Estate Photography / Rick Lescanec, Deerbrook Plus Realty)
Type: House
Price: $699,900
Year Built: 1900
Property Size: 213.68 sq. m
Lot Size: 450 sq. m
Price Growth: 10.8 per cent year-over-year
While it may be more than 100 years old, this Windsor, Ont., home has been restored throughout the years. A brick porch sits at the entrance of the five-bedroom home, which also features custom stonework in the bathrooms. The sunroom leads to a backyard with a deck and gazebo. There is also an open-concept loft with a skylight.
SOUTHEAST SASKATCHEWAN
(Gale Tytlandsvik / Linda Mack, Re/Max Blue Chip Realty)
Type: House
Price: $364,900
Year Built: 1985
Property Size: 119.10 sq. m
Lot Size: 767.29 sq. m
Price Growth: 9 per cent year-over-year
This four-bedroom, three-bathroom bungalow in Estevan, Sask., has had various upgrades since it was built in 1985. In addition to living, dining and kitchen areas on the main floor, the basement features a sizeable family room with built-in cabinetry and a gas fireplace. Also in the basement is a den, storage room and hot tub. The fully fenced backyard includes a deck, garden and two sheds.
This 212-square-metre home in St. John’s, N.L., comes with a large updated kitchen, complete with in-floor heating and ceramic tile. Making up the rest of the home is a large living and dining area, as well as four bedrooms and two bathrooms. In the basement is a laundry room and family room. The detached home is situated within walking distance of a hospital and grocery stores.
INTERIOR BRITISH COLUMBIA
(PrimeLight Media / Shannon Stone, Re/Max Kelowna Stone Sisters)
Type: House
Price: $799,900
Year Built: 1940
Property Size: 129.88 sq. m
Lot Size: under 0.4 hectares
Price Growth: 6.1 per cent year-over-year
Located in Kelowna, B.C., this 130-square-metre house is surrounded by greenery. The large backyard serves as the ideal outdoor living space, complete with a concrete patio and flower garden. Inside are two bathrooms, updated to include heated flooring, as well as two bedrooms. The home also has an open-concept living and dining area that connects to the kitchen.
MONTREAL
(Stephanie Rizzuto, The Agency Montreal)
Type: Apartment
Price: $499,000
Year Built: 2015
Property Size: 68 sq. m
Lot Size: N/A
Price Growth: 5.7 per cent year-over-year
Located in Montreal’s Griffintown neighbourhood is this two-bedroom, one-bathroom corner apartment. Nine-foot floor-to-ceiling windows are found throughout the unit, which features an open-concept floor plan and private balcony. In the condominium are amenities such as a picnic area, heated outdoor pool and rooftop terrace with 360-degree views of downtown Montreal.
TORONTO
(John Wilken Open House Media / Sean Miller, Property.ca)
Type: Apartment
Price: $999,000
Year Built: 2022
Property Size: 107.77 sq. m
Lot Size: N/A
Price Growth: 4.3 per cent year-over-year
Polished concrete ceilings in this apartment unit serve as a stark contrast to its modern design. Along with three bedrooms and two bathrooms, this corner unit in Toronto’s Leslieville neighbourhood also has a walk-in closet and a 100-square-foot balcony offering north-facing views of the city. Floor-to-ceiling windows also allow plenty of natural light to seep in.
WINNIPEG
(Nicole Landry-Milner, Re/Max Performance Realty)
Type: House
Price: $389,900
Year Built: 1909
Property Size: 160.91 sq. m
Lot Size: 306.58 sq. m
Price Growth: 2.2 per cent year-over-year
This home in Winnipeg’s Wolseley neighbourhood spans two-and-a-half storeys. Near the entrance is a living room with a fireplace mantel, which leads to dining and kitchen areas. Also on the main floor is a newly renovated bathroom with a walk-in shower. On the upper floor is a laundry facility, two bedrooms and a four-piece bathroom. Meanwhile, the partially finished basement includes a recreation room, bathroom and bedroom.
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.
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.
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.
(Louisette Higgins, Modern Realty)
(Emma Lee Arsenault Photography / Adele Poirier, Keller Williams Capital Realty)
(KLIK Solutions / Lori Gelmici-Hanni, Royal LePage Edson Real Estate)
(Spartan Media / Anna Piloyan, Re/Max Camosun Oak Bay)
(Taralynn Arsenault, Palmer Real Estate Group, Keller Williams Select Realty)
(Saïda Murray, Proprio Direct)
(Dianne Brown, Re/Max Landan Real Estate)
(Windsor Creative Real Estate Photography / Rick Lescanec, Deerbrook Plus Realty)
(Gale Tytlandsvik / Linda Mack, Re/Max Blue Chip Realty)
(Matt Grandy Photography / Jackie Kavanagh, YYT Realty Group- Kavanagh Burke, Royal Lepage Vision Realty)
(PrimeLight Media / Shannon Stone, Re/Max Kelowna Stone Sisters)
(Stephanie Rizzuto, The Agency Montreal)
(John Wilken Open House Media / Sean Miller, Property.ca)
(Nicole Landry-Milner, Re/Max Performance Realty)
