Those properties represent a tiny share of active residential listings in major urban markets, report says
In Canada’s largest and most in-demand urban markets, homes valued below $200,000 account for less than 1% of active residential listings, according to a new study by Point2Homes.
“The price correction from the last few months means home prices are losing steam, but buyers in Canada’s largest cities would be hard pressed to find affordable homes,” Point2 said in its report. “The short respite buyers were starting to catch onto might be over before they even get to make a move. It also means that finding something within budget is slowly becoming almost impossible again.”
Fully 35 of the 50 largest Canadian cities have affordable homes that cost less than $200,000. At the same time, 24 cities across the country have benchmark home prices higher than $1 million.
Among the major metropolitan areas, Waterloo and Kawartha Lakes, both in Ontario, had the largest shares of homes under $200,000 at 3.13% and 2.62%, respectively.
Across Canada “the actual shares of affordable homes for sale are dismal: With the exception of Waterloo and Kawartha Lakes, the percentage of homes under $200,000 oscillates between a discouraging 0% and 1%,” Point2 said.
The lack of affordable housing supply also did not appear to discriminate based on market activity.
“Listings below $200,000 are non-existent in Peterborough, ON; Welland, ON; and Brantford, ON – which have some of the lowest benchmark prices among the 50 largest cities – but they also amount to 0% in cities like Richmond Hill, ON; Oakville, ON; Aurora, ON; and Markham, ON, where the median price is almost double the national average,” Point2 said.
