A recent report by real estate site Zoocasa revealed a significant decline in home prices across Canada, particularly in Ontario cities, during the transition from summer to late fall. Analyzing benchmark price data from 21 major markets, Zoocasa highlighted a notable trend of decreasing single-family home prices, with the most substantial drops occurring in Ontario. However, pockets of resilience were observed in Atlantic Canada and the Prairies.
The report, published this week, outlined the broad decline in benchmark prices across the majority of Canadian real estate markets, with some areas even dipping below prices recorded the previous year. Ontario stood out as the province with the most significant decreases, claiming the top seven spots for single-family home price declines.
Leading the pack in this downturn was Kitchener-Waterloo, experiencing a substantial 9.7% decrease in benchmark prices between June and November of the previous year, settling at $802,900. Following closely were Hamilton and Burlington, both witnessing an 8.5% drop in prices, reaching a benchmark of $864,200 during the same period.
While Ontario faced the most considerable challenges, the report hinted at potential opportunities in other more affordable Canadian markets. Regina emerged with the largest year-over-year price decrease at 3.2%, with homes reaching a benchmark price of $321,400 in November 2023.
However, not all regions experienced a decline. Calgary, St. John’s, N.L., and Saint John, N.B. bucked the trend, maintaining stable home prices. Calgary, in particular, demonstrated remarkable resilience with a notable 10.5% increase in home prices since November 2022, reaching a benchmark price of $557,400 in November 2023. The report emphasized that as long as migration to Calgary remains robust, housing demand is likely to persist, supporting price growth.
The report also delved into the dynamics of the condo market, noting a consistent demand for more affordable housing options throughout 2023. Contrary to the decline observed in single-family home prices, condo prices experienced growth in nine cities during the assessed period. Saint John, N.B., took the lead with a substantial 12.9% increase, followed by St. John’s, N.L., at 7.4%. Calgary and Halifax-Dartmouth recorded the most significant annual price increases for condo units at 16% and 13.8%, respectively.
In conclusion, the real estate landscape in Canada witnessed a broad decline in home prices, especially in Ontario cities, with Kitchener-Waterloo at the forefront of this trend. Despite these challenges, opportunities for homebuyers were identified in more affordable markets outside Ontario. The condo market, characterized by consistent demand, showcased resilience, with several cities experiencing price growth during the assessed period.
