Would-be buyers entering the market right now might encounter more budget-friendly options, says Zoocasa
Most major Canadian housing markets saw prices on a downward trend as 2023 drew to a close, according to a new analysis by Zoocasa.
Data from the Canadian Real Estate Association (CREA) indicated that the national benchmark price in Canada peaked at $760,600 in June, which was followed by a steady downward trajectory over the subsequent five months.
Zoocasa reported that major markets like Toronto, Vancouver, Ottawa, and Winnipeg embodied this trend, attributing it partially to seasonality and a surge in borrowing costs.
The report also noted that would-be buyers entering the market right now may discover prices aligning more closely with their budgets compared to the inflamed spring and summer markets.
Within just a five-month span, the majority of Canadian real estate markets observed a dip in benchmark prices exceeding 3%, with some markets descending below 2022 figures. The most pronounced decline was seen in the Kitchener-Waterloo region, with the benchmark price falling by 8.9% since June to $708,600, accompanied by a 0.6% annual decrease.
Ontario has exhibited particularly volatile affordability dynamics. London & St. Thomas, Greater Toronto, and Hamilton-Burlington all saw benchmark prices sliding by over 7% since June, with the latter also experiencing a 2.5% annual decline.
Guelph & District registered a 6.6% drop since June and a 2% decrease since 2022, with the November benchmark dipping below $800,000 for the first time since January 2023. In response to diminished demand in these Ontario markets, prices stabilized closer to pre-pandemic levels, Zoocasa said.
Amid projections of continued declines in housing supply and affordability throughout 2024, RESCON is urging political leaders at all levels of government to address these issues.
— Canadian Mortgage Professional Magazine (@CMPmagazine) January 5, 2024
Read more: https://t.co/aaL3eBy7zw#mortgageindustry #housingmarket #housingsupply #mortgage
On the other end of the spectrum, Calgary, St. John’s, and Saint John all bucked the prevailing trend, avoiding a decline in prices since June.
Calgary’s home prices surged by 10.5% on an annual basis, surpassing all other markets surveyed. However, the city maintained relative affordability with a November benchmark price of $557,400.
“As long as migration to Calgary remains strong, housing demand will continue to grow propping up prices,” Zoocasa said.
