Home prices continue to decline as the Canadian housing market cools after a scorching winter. In Canada, the average price of a house in May 2022 was $711,316, a rise of just 3% over the previous year. It is a 5% decrease from the previous month’s median house price of $746,146. While the average price of a house in Canada has increased by around $20,000 over the last year, prices have decreased significantly after hitting a high point earlier in the year. In just a few months, the average Canadian house price has dropped by more than 13%, or more than $100,000, to $816,720 in February 2022. The May 2022 MLS Benchmark Price climbed by 15% year-over-year to $839,100 but declined by 2% month-over-month. The MLS Benchmark Price in Canada has declined from one month to the next for the second time in the last two years. The second occasion occurred in April 2022, when the benchmark price had a monthly decline of 0.2%. Before this month, April 2020 was the last time Canada’s benchmark house price decreased month-over-month.
In May 2022, the average Ontario house price decreased to $940,476. It is a 5 percent fall from April 2022’s average Ontario house price of $985,354 and an 11 percent decline from March 2022. Nonetheless, it is 9% higher than last year. Sales in the Toronto real estate market fell by 39% this month compared to the same month last year. The average house price in the Greater Toronto Area in May 2022 was $1,212,806, representing a 9% year-over-year increase. Hamilton’s housing market witnessed a 14 percent year-over-year rise in typical house prices, while Brampton’s experienced a 15 percent gain. Ottawa’s housing market trailed behind with a year-over-year rise in property prices of 7.5%, while Mississauga’s average sold price grew by 8%. In terms of yearly price rises, the Maritimes continue to outpace the rest of the nation, with Nova Scotia leading the way. The median house price in Nova Scotia in May 2022 was $417,500, representing a 32% year-over-year increase. The average house price in New Brunswick increased by 30% per year, reaching $296,700 in May 2022. The other Atlantic Provinces lagged but still saw significant annual price increases, with Prince Edward Island prices increasing 19% year on year to $350,300 and Newfoundland & Labrador prices increasing 9% year on year to $271,700. In April 2022, the average price of a house in Newfoundland and Labrador was $327,700. This month, the benchmark has decreased by 17% to $290,500. Even so, the province’s yearly growth rate of 9 percent remains higher than that of the Prairies.
The Prairie Provinces fell behind the rest of the nation in terms of yearly housing price increases. Alberta’s average house price in May 2022 was $477,009, representing an annual rise of 8%. Calgary’s housing costs have risen by just 2 percent this year, whereas Edmonton’s have risen by 10 percent annually. Saskatchewan’s year-over-year price rise was the least of all provinces, at only 4 percent. In the meantime, the annual home price rise in Manitoba was 15%. British Columbia has the most expensive housing market in Canada. In May 2022, the average price of a house in British Columbia was $989,661, representing a rise of 8% year-over-year but a fall of 6.5% month-over-month. It exceeds the average Ontario home price of $940,485. The average property price in Powell River has soared by 43% annually, while the average home price on Vancouver Island has increased by 31%.
The average price of a house in Quebec in May 2022 was $514,925, a 15% increase from the previous year. The average price of a house sold in Montreal has climbed by 11% year-over-year, while in Quebec, it has increased by 17%. The average Yukon home price has increased by 8 percent in the last year, while the average Northwest Territories home price has decreased by 7 percent annually. In May 2022, national sales are down 9% month over month and 21% year over year, with the sales-to-new listings ratio (SNLR) falling to 57.5 percent. It is a decrease from April 2022’s SNLR of 66.5 percent and March 2022’s SNLR of 75 percent. The SNLR is at its lowest level in over three years this month. More than 70 percent of SNLR suggests a seller’s market, whereas less than 40 percent of SNLR indicates a buyer’s market.