Canada’s housing market is experiencing a robust recovery, characterized by a steady increase in home prices across the country. In May 2023, the average home price in Canada reached $729,044, marking a 2% rise from the previous month and the highest level since April 2022. Notably, Ontario and British Columbia, two major housing markets, also witnessed a 2% monthly increase in prices. This resurgence in the housing market comes as a positive sign after a challenging period in which rising interest rates and economic factors impacted the Canadian real estate landscape.
National Trends: The average home price in Canada is now higher than the levels seen at the same time last year, demonstrating a 2% year-over-year increase. This marks the first positive annual increase in over a year, indicating a rebound from the impact of rising interest rates. Despite rate hikes slowing down, the Canadian housing market faced headwinds that tempered housing demand. A 1% year-over-year increase in sales during May 2023, with 54,241 transactions recorded nationwide, is proof that recent data is showing signs of recovery.
Ontario: In Ontario, the average home price in May 2023 was $928,897, reflecting a slight 1% decrease compared to the previous year but a 2% increase from the previous month. The Greater Toronto Area (GTA) experienced an average home sale price of $1,196,101, showing a 1% decrease year-over-year but a notable 4% increase month-over-month. GTA home sales surged by 24% year-over-year, accounting for approximately 17% of all home sales in Canada during that month. Other cities in Ontario, such as Hamilton and Brampton, witnessed varying degrees of price decreases, while Oshawa saw a 1% increase. Ottawa and London experienced 6% and 10.5% year-over-year decreases, respectively.
British Columbia: British Columbia remains the most expensive province to purchase a home, with an average home price of $1,019,145 in May 2023. This represents a 3% increase year-over-year and a 2% increase compared to the previous month. Vancouver Island saw a 13% year-over-year decrease in average home prices, while Powell River experienced a substantial 15% increase. Victoria’s average home price decreased by 4% year-over-year, settling at $1,018,619. Greater Vancouver maintained its position as one of the costliest markets, with an average home price of $1,311,090, marking a 2% increase compared to the previous year.
Quebec: In Quebec, the average home price in May 2023 was $481,737, indicating a 3% decrease from the previous year but a 4% increase compared to the previous month. The average home sold price in Montreal stood at $593,357, reflecting a 2% year-over-year decrease and a 5% increase month-over-month.
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Atlantic Canada: Atlantic Canada exhibited a mix of price increases and decreases across different regions. Prince Edward Island (PEI) witnessed a 7% year-over-year decrease, while Nova Scotia experienced a 4% increase in average home prices. Newfoundland’s St. John’s saw a considerable 9% monthly decrease in prices, while New Brunswick experienced a 2% year-over-year decrease. Overall, the region showcased varied performance in its housing market.
The Prairies: Alberta emerged as the hottest housing market in Canada, boasting a remarkable 6% year-over-year increase in home prices, the highest nationwide. Saskatchewan experienced a significant 6% monthly price gain, the largest in the country. Alberta’s average home price reached $470,037, reflecting a 3% increase year-over-year and a 2% increase compared to the previous month. Saskatchewan witnessed an unchanged year-over-year average home price but a notable 6% monthly increase, reaching $315,444. Manitoba, however, faced an 8% year-over-year decrease, settling at an average price of $358,391, with a 1% monthly increase.
Canada’s housing market is showing resilience, with increasing home prices observed in various regions across the country. After a period of challenges driven by rising interest rates, the market is demonstrating signs of recovery and stability. Ontario and British Columbia, as major housing markets, experienced positive monthly growth in prices. While some areas witnessed year-over-year price decreases, others showcased remarkable increases. The housing market’s performance in each province and region reflects a dynamic landscape that continues to evolve.
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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