An analysis of 21 major Canadian housing markets reveals that only three areas avoided a price decline since the market peaked in June 2023
An analysis of 21 major housing markets in Canada has found that only three areas have not seen a price decline since the Canadian real estate market reached its peak in June 2023.
At that time, the national benchmark price was $760,600, before a downward trend set in across most major markets in Canada over the next five months.
Real estate firm Zoocasa released an analysis this week comparing benchmark price data from the Canadian Real Estate Association (CREA) and found that only three markets — Calgary, St. John’s and Saint John — had not seen a price decline.
Other Ontario cities, including London, St. Thomas and Hamilton-Burlington have seen benchmark prices fall by more than 7 per cent since June, while major markets like Toronto, Vancouver, Ottawa and Winnipeg have also experienced price drops since the summer.
In the GTA, prices dropped 7.7 per cent since June and 0.1 per cent from a year earlier, while Guelph recorded a 6.6 per cent drop since June.
While the market generally cools down in the winter, increased borrowing costs are also likely a contributing factor. The price adjustments have brought the market closer to pre-pandemic levels.
In the three markets that recorded growth since June, Calgary saw the largest increase at 1.7 per cent, followed by St. John’s (1.5 per cent) and Saint John (0.1 per cent).
The decline across the majority of the markets has been most significant for single-family homes. While prices for condos have dropped in some markets, including Kitchener-Waterloo and the GTA, they’ve largely remained stable and even increased in others.
Overall, the analysis is in line with other reports that have noted an uneven but general market downtown in 2023 based on sales volume.
Montreal, for instance, recorded a cumulative housing sales drop of more than 14 per cent compared to the year prior, its steepest decline since 2000.
Toronto and Calgary also witnessed significant downturns in sales volume throughout the year, though sales rebounded slightly in December. Toronto recorded a sales increase of more than 11 per cent compared to the same month the previous year, while Calgary saw a 13.8 per cent rise in December sales, despite an 8 per cent overall drop from 2022.
The record-breaking warmth of December may have contributed to the sales increase, as well as a decrease in mortgage rates towards the end of the year, with the lowest available five-year fixed rate dropping to 5.4 per cent.
While some economists believe housing prices could stabilize by March, the marginal job growth recorded in December, coupled with the potential impact of wage increases on future interest rate cuts, leads others to predict further challenges ahead. These challenges include a growing risk of insolvency, which has now exceeded pre-pandemic levels.
That trend is largely attributed to growing household debt, inflation and high interest rates. The effects are particularly acute in Ontario, B.C., Alberta, Saskatchewan and Manitoba.
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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