In December, the average selling price of a property in Canada was $626,318 (a drop of 12% from the previous December). According to newly published data from the Canadian Real Estate Association, the volume of house sales and their prices dropped significantly from the same month a year ago.
From December 2021 to February 2022, sales dropped by more than 39%. As Furthermore, prices had dropped significantly from their peaks of $816,720 in February 2022 and an average of $713,500 at the end of 2021, both of which occurred before the Bank of Canada began actively hiking lending rates.
The Realtor Group and factors compile the House Price Index (HPI) in the number and variety of homes sold. The HPI fell 13% from its high the previous year, with the most significant drops occurring in Ontario and British Columbia. As for the rest of the world, they observed either tiny decreases or rises.
Since March 2022, when Canadian home prices peaked, the benchmark price has declined every month. Since then, Canada's mortgage and prime interest rates have increased in response to several rates rises from the Bank of Canada, even as the country's inflation rate has remained stubbornly high.
In December 2022, the average house price in Ontario was $812,338, down 2% from the previous month. Per Canada's general 12% year-over-year price drop, this is the lowest level in 22 months. Comparable to the yearly drop of 12% in British Columbia's real estate market. As purchasers flee one of Canada's most expensive home markets, the Toronto real estate market has experienced a steep drop in sales volume. Compared to December 2017, house sales in the GTA dropped by 48% to 3,117. In December 2022, the average price of a house sold in the GTA was $1,051,216, a reduction of 9% from the previous year. The percentage of Canadian house sales this represents is 14%.
The average house price in Hamilton fell by 13% from a year ago, while in Brampton, it fell by 19%. The average house price has dropped by 15% in Oshawa, 11% in Mississauga, and 2% in Ottawa. Prices in London fell by 13% on average.
In December 2022, the average house price in British Columbia was $911,753, down 12% from the previous year and up 0.5% from the prior month, making it the most expensive province in Canada in which to purchase a home. Though both areas are seeing yearly price declines, this is still greater than Ontario's average price of $812,338. Average property prices in Powell River, Fraser Valley, Victoria, and Greater Vancouver decreased by more than 20%, 18%, and 5%, respectively, making these regions the most dynamic in British Columbia's real estate market.
In December 2022, the average house price in Quebec was $442,616, a decrease of 2% from the previous year. The average property price in Montreal dropped by 3 percent of the prior year to $549,057. Average prices for the rest of Quebec as of the fourth quarter of 2022 are at hand. The average house price in Q4 2022 was $357,754 in Quebec City, $247,534 in Saguenay, $412,777 in Sherbrooke, and $433,491 in Gatineau.
Nova Scotia's average house price fell 1.5% year over year to $362,966, while New Brunswick's average home price was down 1% year over year to $264,402. These yearly price losses are less severe than those in Ontario and British Columbia. Still, this is a significant shift from last month's pricing on an annual basis. In December 2022, the average house price in Fredericton was $301,058, up 5% from the previous month, while in Greater Moncton, it was $272,401, and in Saint John, it was $284,899. The median price in Halifax-Dartmouth was $474,389, down 3% year-over-year. The average house price in Newfoundland and Labrador was $301,951, an increase of 10% over the previous year.