Winter is the perfect time for motivated homebuyers to find great deals in Canada's real estate market. As the colder months settle in, prices tend to drop, making it more affordable for buyers to enter the market. This trend, coupled with the high borrowing costs, has led to a decline in home prices across the country.
According to the Canadian Real Estate Association (CREA), the national benchmark price reached its peak in June 2023 at $760,600 before starting a downward trend over the next five months. Major cities such as Toronto, Vancouver, Ottawa, and Winnipeg have all seen prices drop since the summer. While seasonality plays a role in this decline, it is primarily driven by the increasing borrowing costs.
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In just five months, most Canadian real estate markets have experienced a drop in benchmark prices by more than 3%. Some markets have even fallen below last year's prices. Kitchener-Waterloo has seen the most significant decline, with the benchmark price decreasing by 8.9% since June, reaching $708,600. Ontario cities, in general, have witnessed a change in affordability as well. London & St. Thomas, Greater Toronto, and Hamilton-Burlington have all seen benchmark prices fall by more than 7% since June. Guelph & District experienced a 6.6% drop since June, with its benchmark price falling below $800,000 for the first time since January 2023.
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However, not all cities have experienced price declines. Calgary, St. John's, and Saint John have seen their home prices increase since June. Calgary, in particular, has witnessed a 10.5% price growth since November 2022, making it a promising market for buyers. As long as migration to Calgary remains strong, housing demand will continue to support price stability.
When it comes to single-family homes, Ontario cities once again lead in price declines. Kitchener-Waterloo had the greatest decline, with a 9.7% drop since June, bringing the benchmark price to $802,900. Hamilton-Burlington followed closely with an 8.5% decrease since June.
Despite Ontario's prominence in price declines, buyers across the country still have opportunities to benefit from more affordable markets. Regina experienced the greatest year-over-year drop in single-family home prices at 3.2%, and Winnipeg and Halifax-Dartmouth saw declines of over 4.5% since June. These markets offer benchmark prices below $520,000, making homeownership more accessible.
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Condo prices have not experienced as significant a drop as single-family homes. However, for condo buyers in Ontario, there are still opportunities for savings. Kitchener-Waterloo, Greater Toronto, and London & St. Thomas have all seen more than a 4% drop in benchmark condo prices since June. Kitchener-Waterloo, in particular, has experienced a 5.2% decline from 2022.
Compared to single-family home prices, condo prices have grown in nine cities over the past five months. The strongest growth was seen in Saint John and St. John's, with increases of 12.9% and 7.4% respectively since June. Calgary and Halifax-Dartmouth experienced the greatest year-over-year price growth at 16% and 13.8% respectively.
If you're considering entering any of these markets, it's important to consult with a local real estate agent. They can provide you with specific information and guidance tailored to the local market. Don't hesitate to reach out and discuss your home-buying plans today.
