According to the latest data from the Canadian Real Estate Association (CREA), housing market conditions across Canada have seen price dips across many major areas in the last couple of months following historic growth over the last year. To better understand where home buyers may find pockets of affordability, we analyzed the average home price in each of the 25 regional housing markets covered in CREA’s monthly report and ranked every market based on the annual rate of growth of the average home price. We also identified where the average home price fell below and above the national average home price and curated a list of example homes in each market that sold within a $20,000 range of the average home price.
Canada’s Evolving Real Estate Market
Sales across the country dipped 23.9% year-over-year, with 48,176 homes changing hands. New listings on the other hand have increased, with 95,332 homes entering the market, we’ve seen a 10% improvement over last June. The market has become more balanced in recent months as a result of the rising interest rates and the increase in housing supply, with the sales-to-new-listings ratio (SNLR) hitting 51.7% – the lowest it’s been since January 2015. The SNLR is used to determine if the market is favouring buyers, sellers, or is balanced. It is calculated by dividing sales by the total number of new listings added to the market during that time. A balanced market usually falls between 40-60%.
CREA notes that as the cost of borrowing increases, buyer uncertainty is now the main factor affecting the housing market. In previous months, the limited housing supply was leading to a sense of urgency in many buyers. Potential buyers are now choosing to stay on the sidelines as they wait and see how the rate increases play out and how they affect the market before making a move.
The upward pressure on home prices has slowed, with many major areas across the country seeing month-to-month dips. While still 15.1% higher than last year, Canada’s average home price of $807,400 is 1.9% lower than May.
Of the 25 regional housing markets included in CREA’s monthly report, all markets posted an increase in the average home price year-over-year, ranging from 3.5% to 30.5%. Just six of the markets in the report showed a growth in the average home price of at least 20%.
Average Home Price Below National Average in 20 of 25 Regional Markets Across Canada
The Toronto and Vancouver real estate markets are the largest in Canada and drive the high national average, but many smaller, neighbouring cities are seeing more affordable average prices. Currently, 20 markets are sitting below the average, compared to 18 markets in our previous report last February.
Saguenay, Quebec is currently Canada’s most affordable market and saw annual price growth of 6.6% from last June. Its current average home price is $267,353. Greater Vancouver recorded the highest average home price in June at $1,223,700, up 12.4% annually. Saint John, New Brunswick has seen the largest increase in the annual average by 30.1%, but the price is still below the national average at $294,900.
Check out our infographic below highlighting the average home price in 25 regional housing markets across Canada and which locations are above or below the national average.
What You Can Currently Buy in 10 of Canada’s Most Affordable Regions
- Saguenay, Quebec
- Average home price: $267,353
- Annual price growth: 6.6%
- What you could buy: 1362 Rue des Rosiers
- List price: $259,000
- Property details:
- Detached
- 2 beds, 2 baths, 2 parking
- Newfoundland and Labrador
- Average home price: $280,200
- Annual price growth: 10.8%
- What you could buy: 4034 Duley Crescent
- List price: $239,000
- Property details:
- Detached
- 2 beds, 1 bath, 0 parking
- Saint John, New Brunswick
- Average home price: $294,900
- Annual price growth: 30.1%
- What you could buy: 676 Sand Cove Road
- List price: $285,000
- Property details:
- Detached
- 4 beds, 1 bath, 0 parking
- Regina, Saskatchewan
- Average home price: $322,800
- Annual price growth: 3.5%
- What you could buy: 1400 Aberdeen Street
- List price: $319,900
- Property details:
- Detached
- 3 beds, 2 baths, 0 parking
- Quebec CMA, Quebec
- Average home price: $325,600
- Annual price growth: 12.6%
- What you could buy: 21-23 Route du Président-Kennedy
- List price: $324,500
- Property details:
- Semi-detached
- 3 beds, 1 bath, 4 parking
- Trois Rivières, Quebec
- Average home price: $330,431
- Annual price growth: 29.5%
- What you could buy: 5600 Rue Roméo-Martel
- List price: $324,800
- Property details:
- Detached
- 5 beds, 2 baths, 4 parking
- Winnipeg, Manitoba
- Average home price: $357,000
- Annual price growth: 7%
- What you could buy: 108 Redonda Street
- List price: $349,900
- Property details:
- Semi-Detached
- 3 beds, 2 baths, 3 parking
- Thunder Bay, Ontario
- Average home price: $358,051
- Annual price growth: 6.4%
- What you could buy: 15 Mckibbon Street
- List price: $349,900
- Property details:
- Detached
- 2 beds, 1 bath, 0 parking
- Saskatoon, Saskatchewan
- Average home price: $376,100
- Annual price growth: 5.4%
- What you could buy: 1122 2nd Street East
- List price: $374,900
- Property details:
- Detached
- 2 beds, 2 baths, 0 parking
- Edmonton, Alberta
- Average home price: $402,800
- Annual price growth: 8.4%
- What you could buy: 5313 15 Avenue Southwest
- List price: $394,400
- Property details:
- Semi-detached
- 3 beds, 2 baths, 0 parking
