There has been a significant cooling effect witnessed in the Canada real estate market in recent times. As per reports from the CREA (Canadian Real Estate Association), the market figures indicate a drop in price growth for January 2019 throughout the country. The annual growth spurt for housing units in Canada is reportedly the tiniest ever since the recession as per CREA. This has been driven majorly by several market factors and only two markets have not come down drastically from peak pricing levels as per reports.
Last month, the realty prices in Canada came down with a negligible gain annually and CREA reports have indicated that prices of average homes in Canada touched $613,500 for January 2019 which is lower by 0.52% as compared to the previous month. Prices have gone higher by roughly 0.79% as compared to January 2018 but they are lower by 2.28% from the peak levels that were seen in the market back in May last year. This is somewhat balanced as per experts considering the current scenario. The annual growth momentum has continued to go downwards to lower levels and was 89% lower in January 2019 as compared to early 2018. Additionally, it was the 5th month in succession for which price growth declined. This is the slowest growth pace ever since the year 2009.
Other key market trends
There are quite a few gainers in the Canada real estate market as well in terms of overall price growth. Eastern Canada has the highest number of markets which have done better in terms of growth in prices. Guelph has posted the highest growth rate with prices increasing by 7.18% in January 2019 as compared to 2018 and prices touching $522,300 as well. Ottawa has also witnessed growth of 7.11% in prices and they touched around $396,300 accordingly. Niagara was also there in the list of gainers, touching $391,300 in average prices which indicates growth of 7.03% as compared to the last year. However, prices are still not at their peak levels although there have been handsome gains made by them last month.
Western Canada has the highest number of micro markets which saw major drops in housing price growth. Vancouver had home prices falling by 4.52% as compared to 2018 and they touched roughly $1,019,600 in January 2019. Calgary had prices of $410,200 which were down by 3.87% as compared to January 2018. Regina also saw price declines of approximately 3.82% with home prices touching $266,600. Vancouver still is the costliest housing market in Canada in spite of this fall in prices.
Benchmark prices in the country and the changes
Considering benchmark pricing throughout Canada, Vancouver’s price drop has been well documented and the peak pricing here was around $1,104,600. Similarly, the peak price was $815,200 for Toronto although it has come down to $761,800. In case of Oakville-Milton, peak prices were $1,049,600 while they have now come down to $962,800. In case of Fraser Valley, peak prices were $885,900 and they are now at $821,100 as of January 2019. For Victoria, $680,200 was the price in January 2019 which was lower than peak price level of $696,100.
For Hamilton, the peak pricing was $588,300 which has now dropped to $582,300. In case of Guelph, however, prices in January 2019 touched $522,300 and peak levels were $530,000 which is not a long way off. Barrie has seen peak prices of $532,700 coming down to $464,400 in January 2019. In case of Calgary, peak pricing was at $455,500 while it has now come down to $410,200. Ottawa has seen peak price levels of $396,300 remaining unchanged while Niagara’s prices in January 2019 of $391,300 are slightly lower than peak levels of $393,500. In case of Montreal, peak prices were at $349,300 and they have remained the same.
In Edmonton, peak prices of $373,800 have come down to roughly $317,200 in January 2019. Saskatoon has seen peak price levels of $317,900 come down to $286,500 in January while in Moncton, they have come down from $184,100 to $178,500. Montreal and Ottawa are the markets which have touched their peak at the moment. Barrie, Regina and Edmonton have seen some of the highest declines in prices. Toronto’s real estate market has remained relatively stable with a marginal decline.
The big opportunity for buyers is now to snap up properties at considerably lower prices, particularly in high-growth areas like Toronto and the rest of the GTA (Greater Toronto Area). Lower prices should certainly draw more buyers and boost property sales figures in the near future according to experts.