Regional Canadian Housing Markets
The housing market in Canadian cities has seen a 5% drop in the first half of 2022 after a boom in the housing market in 2021. Material shortages and increases in construction costs had a significant impact on construction times and affordability. Here are the housing supply trends for the country’s CMAs.
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Vancouver
The benchmark prices in Vancouver saw a 0.6% drop over the past year. The key highlights of housing supply trends in Vancouver are:
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- Single Family Detached Homes saw a drop of 1.7% in benchmark prices since November of 2021.
- A total of 486 units were sold, which is a 50.8% drop over the past year.
- Freehold Townhouses saw an increase of 2.7% since the November of 2021.
- A total of 281 units have been sold since November 2021, which is a 54.2% drop.
- Condos have seen a rise of 3.5% in benchmark prices.
- About 847 units were sold, which is a 53.7% drop this year.
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Edmonton
The average price of homes in the Edmonton area is $368,576, which is a 4.1% decrease from November of last year.
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- Single Family Detached homes in the Greater Edmonton area averaged $454,541, a mere 0.5% drop since November 2021, with 708 units sold, which is a 36.3% drop in the same time frame.
- Freehold Townhouse prices averaged $362,606, which has increased by 4.2% since last November but have seen a drop of 37.1% in terms of sales, with only 146 units sold.
- Condo prices and sales are down this year by 4.3% and 11.2%, respectively. The average price of Condos in the Greater Edmonton area now stands at $216,690, with 373 units sold this past year.
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Calgary
Calgary has seen a 22% drop in real estate sales this past year, with only 1,648 units sold. The primary reason for this has been the rise in property prices across all property types.
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- Detached homes saw an increase in average prices by about 6% to over $623K.
- 818 transactions of Detached homes took place over the past year, which is a 34% decrease.
- The average price of a Semi-Detached home rose to an average of $623,427, which is a 6.4% increase since last year.
- The number of units of sold dropped to 818, which is a 34.3% drop and
- The number of new listings dropped to 849, which is also 19.3% lower than the previous year.
- Freehold Townhouses in Calgary saw an increase in average prices by 8% to $356,673. The number of units sold and the number of new listings stood at 133 and 132, which is a 37% and 23.3% drop from the previous years, respectively.
- Average Condo prices shot up by 2.3% to $292,146. While the number of units sold rose by 34.9% to 448, new listings saw a 17.8% drop, with 379 on offer.
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Toronto
Toronto has seen the highest drop in the housing market in Canadian cities in terms of average property prices. The average home price in Toronto decreased by 7% compared to last year, to an average of $1,079,395. Despite the drop in property prices, the Greater Toronto Area has still suffered a 50% in overall real estate transactions since November of last year.
The key points related to the housing market in Toronto are as follows:
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- Detached homes’ average prices decreased by 11% to $1.39M.
- Semi-detached homes saw a drop in property prices by over 14% to $1.04M
- Freehold Townhouse’s average prices dropped by over 9% to an average of $994K
- Condos did not see any change in average prices this year but still witnessed a drop of 55% in terms of units sold.
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Ottawa
Ottawa has seen a drop in average prices of over 3.6% over the past year. Rising mortgage rates have seen a drop in affordability, leading to a 42% decrease in property sales in Ottawa this past year.
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- Single Family homes in Ottawa have seen a drop of 5.2% since November last year, and the average price now stands at $680,031.
- The number of units sold this year has also fallen by 39.4% to 658.
- Condo prices in Ottawa fell by 3.8% to an average of $415,533, with only 188 units sold this year which is a 49.6% drop.
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Montréal
Montreal is one of the few cities that has seen average home prices plateau at the levels that they were last year. The housing supply trends for Montreal are:
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- Single detached homes saw a measly drop of 1% in property prices, which now stand at $520,000. However, it saw a 30.5% drop in units sold at 1460 since November last year.
- Condo Prices in Montreal increased by 1.6%, now averaging $380,000 and saw a 40.9% drop in sold units.
- Plex Prices dropped by 1.4% to an average price of $715,000, and with only 210 units sold, that translates to a 60.2% drop since last year.
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Halifax
Halifax saw a 20% increase in real estate prices, which now average $429,855. The housing supply trends for Halifax in 2022 are as follows:
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- Single Family Homes saw an increase of 23.2% in benchmark prices which now stand at $403,800.
- Townhomes saw their benchmark prices rise by 18% to a new average of $481,500.
- Apartments saw a drastic increase of 30%, and the benchmark prices now hold around $482,000.
Other Findings From The 2023 Canadian Housing Market
The housing market in Canadian cities has seen a major shift in 2022 due to the series of interest hikes throughout the year. The rise in interest rates has eventually made the developers apprehensive about starting new projects.
As Moshe Londer puts it, “The rapid increase in interest rates is probably going to generate a rather quick fall in housing prices [and] a sudden correction.” Construction cost increases and material shortages have impacted construction timelines and affordability. And the elevated interest rates may also end up causing downward pressure on next year’s housing prices. As the interest rates rise, the country may also enter a recession in 2023 during its first quarter.
Final Words
Broadly speaking, the housing market in Canadian cities is on the decline. Construction cost increases and material shortages have impacted timelines and affordability. The rise in interest rates has seen a shift towards rental housing, making developers apprehensive about starting new projects. All in all, the present real estate market does not favour first-time home buyers in Canada.
The Canadian Real Estate Market has had good success in the past year. However, the near future has a lot of challenges in store. Amid financial, environmental, and social-economic pressures, the housing market in Canadian Cities has witnessed a slump in market activity and will hopefully improve over time.
You May Also Read :
| Guide To Ottawa Housing Market | Ottawa Housing Market |
| Climate Change on Canada Real Estate | Effects of Climate Change on Canada Real Estate |
| All About Toronto Housing Market | Toronto Housing Market |
| Canadian Housing Market | Canadian Housing Market |
Frequently Asked Question (FAQs)
Properties in Canada are primarily divided into three classes, freehold, condominiums, and leasehold.
There are 5 different types of properties available in Canada, detached homes; semi-detached, townhouses, condos, and multi-story structures.
Among the cities listed here, Edmonton is the most affordable city for first-time home buyers in Canada. Average condo prices are around $216,690, and freehold townhouses are around $362,606.
Vancouver and Toronto are two of the most expensive cities to buy real estate in.
If you can afford the high-interest rates then yes, this is a good time to invest in the Canadian Real Estate Market. Housing prices are unlikely to crash, and this is the best time to capitalise on the demand for homes, which is rising exponentially. What are the different property classes in Canada?
What are the different property types available in Canada?
Which is the most affordable city for a first-time home buyer in Canada?
Which are the most expensive cities in Canada in terms of real estate?
Is this a good time to invest in the Canadian Real Estate Market?
