The average house price in the nation in March 2023 was $686,371, up 4% from the previous month and the highest since May 2022, owing to robust gains in major Canadian housing areas. In fact, the previous month’s provincial average house price increased in the majority of provinces. Alberta, Saskatchewan, and Prince Edward Island have all had a solid comeback this month.
Despite this, the national average house price is 14% lower than the previous year, when Canadian home prices peaked in February 2022. Prices have fallen as a result of the previous year’s effect of rising Canadian interest rates.
In the United States, sales in March 2023 are down 34.5% year on year, with 41,636 transactions. This is a 41% gain from the previous month and a 41.6% increase from January 2023, when Canadian house sales were at a 14-year low.
In March 2023, the MLS Benchmark Price in Canada, which gauges the price of a “typical” property in Canada, was $727,700. This is a 15.5% decrease from the previous year, but a 2% increase over the previous month. This is just the second monthly increase in the benchmark price since March 2022. The Bank of Canada’s many rates rise since March 2022 have prompted Canadian mortgage rates and prime rates to rise, lowering housing demand.
Ontario
In March 2023, the average house price in Ontario was $881,946, a 16% year-over-year decrease but an 8% month-over-month gain. The average house sold price in the GTA in March 2023 was $1,108,606, a 15% reduction year over year but a 1% gain month over month. In March, GTA house sales were down 37% year on year, with 6,896 transactions. This accounts for around 17% of all house sales in Canada this month.
In other Ontario cities, average house prices in Hamilton plummeted 21% year over year, while home prices in Brampton fell 21%. When compared to the rest of the GTA, the average house price in Oshawa is down 19.5% year on year. The average sold price in Mississauga fell by 12% in the previous year, while property prices in Ottawa fell by 16%. The average sales price in London’s property market fell by 21% year on year.
British Columbia
British Columbia is the costliest province in Canada for property buyers. In March 2023, the average house price in British Columbia was $961,451, a 12% decrease year over year and a 2% increase over the previous month.
The Fraser Valley, where average house prices are down 20% year on year, and South Peace, where prices are up 7% year on year, are the top movers in BC’s housing market. Home prices in Victoria have dropped 13% year on year to $939,942. The average house price in Greater Vancouver in March 2023 was $1,267,057, a 5% decrease from the previous year.
Quebec
The average house price in Quebec in March 2023 was $451,313 – a 4.5% decrease from the previous year. It also represents a 3% monthly rise. In Montreal, the average house sold price is $550,956, a 6% reduction year on year but a 3% rise over the previous month.
Atlantic Canada
Early this year, the Canadian Real Estate Association (CREA) reported that housing prices in numerous Atlantic Canadian communities, as well as areas of Ontario, were beginning to climb again. Since then, property prices have mainly leveled out. The average house price on Prince Edward Island in March 2023 was $401,940, a 3% year-over-year decrease and a 6.5% month-over-month increase. The average house price in Nova Scotia is $404,912, up 0.5% from the previous month but down 10.5% from last year. The average property price in St. John’s, Newfoundland, fell 3% month over month to $273,967, representing a 1% decrease year over year.
The Prairies
With some big price rises in the preceding month, the Prairies are heating up. Alberta home prices have risen 15.5% month on month, Saskatchewan house prices have risen 6%, and Manitoba house prices have risen 4%.
The average house price in Alberta in March 2023 was $494,166, up 6% year on year and 15.5% over the previous month. The average house price in Saskatchewan is down 1% year on year to $307,275, while the average home price in Manitoba is down 11% year on year to $338,022.
Similar year-over-year changes have been seen in the main Prairie metropolitan areas. house prices in Calgary are down 0.5% year over year but up 6% month over month to $535,743, while house prices in Edmonton are down 6% year over year but up 6% monthly to $390,063. Meanwhile, the average house price in Winnipeg is down 10% year on year but up 3% monthly to $359,290.
Since before the Budget Day on April 16, Prime Minister Justin Trudeau has been making announcements addressing the housing crisis facing the North American nation. From incentivizing the construction of affordable housing to reconstruction, these plans promise to improve the housing infrastructure of Canada.
The real estate sector’s most influential leaders and innovators will be gathering in Calgary for a conference that, in all probability, is going to be the biggest real estate event in Alberta. Titled, ‘Rock’N REAL ESTATE 2024’, the BUZZ conference will be taking place in Carriage House Hotel & Conference Centre on Thursday, May 2. The meeting will open at 7:30 am with a light continental breakfast. The discussion will go from 8 am to 5 pm followed by an hour of networking session at the end of the event. Cocktails on the house!
Canadian housing activity was largely stable in March, but a key spring selling season lies ahead. Existing homesales edged up 0.5% in March (seasonally adjusted) and were up a modest 1.7% from sluggish year-ago levels (although an early Easter long weekend likely reduced volumes somewhat). While current activity might seem quiet compared to the exuberance in 2021 and early 2022, sales volumes are trending about in line with pre-COVID norms, albeit at the low end of that range.
“We are changing the way we build homes in Canada. In our housing plan and Budget 2024, we are delivering ambitious action and investments to build more homes, make it easier to rent or own, and help the most vulnerable with stable housing. This is about restoring fairness for every generation, and housing is at the heart of that”, said Canadian Prime Minister, Justin Trudeau about the country’s new housing plan.
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