Zoocasa
Sold Prices
Map
Market Insights
  • Blog Home
  • For Buyers
  • For Sellers
  • Real Estate News
  • Mortgage News in Canada
  • Free Guides (PDF)
  • Real Estate Infographics
Zoocasa
  • Blog Home
  • For Buyers
  • For Sellers
  • Real Estate News
  • Mortgage News in Canada
  • Free Guides (PDF)
  • Real Estate Infographics
Home Infographics

How Many Homes Can You Buy Across Canada for the Price of One in Toronto?: CREA August Update

Penelope Graham by Penelope Graham
September 15, 2017
in Infographics, Real Estate News
Reading Time: 4 mins read
CREA August 2017 Update
Share22
Tweet
Share28
50 Shares

Ontario’s Fair Housing Plan, combined with rising mortgage rates and tougher qualification rules, has taken a bigger-than-expected bite out of the Canadian housing market, prompting the national real estate association to alter its sales forecast for this year and next.

The Canadian Real Estate Association has made a downward revision to the numbers it predicted in June, saying sales will decline by 5.3 per cent to 506,900 this year. That’s a drop of more than 20,000 homes sold than previously called for. Both British Columbia and Ontario will each see 10 per cent fewer sales in 2017.

However, while sales were down in 60 per cent of all markets in August, the Greater Golden Horseshoe is proving to be the biggest influence, dragging down trends across the nation with its 14.3-per-cent decline.

“In Ontario, housing market sentiment has sidelined more buyers than was previously anticipated following changes to the provincial housing policies aimed at reining in housing markets in the Greater Golden Horseshoe region announced in April,” states CREA’s report.

“Tightened mortgage rules, higher mortgage default insurance premiums, changes to Ontario housing policies and higher interest rates are factors that will continue to lean against housing market activity over the rest of the year and into 2018.”

Related Read: Bank of Canada Hikes Rate to 1% in September Announcement

Slightly More Home Buyers in August

In the short term, however, CREA’s August numbers reveal a slight uptick month over month, with sales increasing by 1.3 per cent since July. While that’s nearly 10 per cent below last year’s levels, it breaks the fourth straight month of sales declines.

Sales are currently 13.8 per cent lower than the market’s March peak. The MLS Home Price Index rose 11.2 per cent year over year, while the national average price is up 3.6 per cent, to $472,247. Cutting out the Toronto and Vancouver markets, the average price clocks in at $373,859.

The Rush to Beat Rising Mortgage Rates

Recent changes, such as mortgage stress tests, a foreign buyers tax, and an interest rate hike, have left buyers reeling, suggests the report; while slower sales and price growth are leading to more balanced conditions, the rapid transition has made buyers increasingly trepidatious. Indeed, Andrew Peck, CREA president, says the slight uptick in activity this month could be the result of borrowers racing to lock into pre-approved mortgage rates as interest rates are on the rise.

“Experience shows that home buyers watch mortgage rates carefully and that recent interest rate increases will prompt some to make an offer before rates move higher, while moving others to the sidelines.”

Gregory Klump, CREA’s chief economist, adds, “Time will tell whether the monthly rise in August sales activity marks the beginning of a rebound, particularly in the Greater Golden Horseshoe region and other high-priced urban centres. The picture will become clearler once mortgages that were pre-approved prior to recent interest rate hikes expire.”

Fewer Homes for Sale Offsetting Slower Activity

While sales are slowing down annually, tighter supply is keeping market conditions from swinging too far into buyers’ market territory.  New listings retreated 3.9 per cent, for the third month in a row, with the greatest declines in the GTA, Hamilton-Burlington, London-St. Thomas, Kitchener-Waterloo, and the Fraser Valley regions. That’s pushed the national sales ratio of new listings to sales to 57 per cent: slightly closer to sellers’ conditions than the 54.1 per cent recorded in July.

A full 70 per cent of markets are considered to be balanced, up from 63 per cent last month, including the GTA where “a decline in new listings has firmed market balance in a number of Greater Golden Horseshoe housing markets, where it had recently begun tilting toward buyers’ market territory,” the report reads.

In terms of available homes for sale, there were five months of inventory across the country in August; 2.3 months in the GGH, a sharp increase from the February-March all-time low of 0.8 per cent.

Houses Seeing Greatest Sales Declines

By housing type, single-detached homes saw the greatest declines in price growth, though prices rose across every home type. As reported by regional real estate boards, lower-priced home types such as condos and townhouses remain in the highest demand:

  • Two-storey single detached: +8.3 per cent
  • One-storey single detached: +8.1 per cent
  • Apartment: +19.5 per cent
  • Townhouse / Rowhouse: +14.4 per cent.

 Affordability Remains Uneven by Region

CREA Prices compared to Toronto

However, despite the slowing conditions seen in the Ontario and Greater Golden Horseshoe markets, affordability there is still much steeper than other markets across Canada. In fact, you could buy nearly five homes in Fredericton, which reported the lowest average home price when compared to what it takes to own a home in Toronto:

How Many Homes Can You Buy Across Canada for the Price of One in Toronto?

CREA Prices August 2017 Zoocasa

Cities You Can Have Over 2 Homes For the Price of a Toronto Home ($732,292):
    • Edmonton, 2.0 homes, $373,438
    • Montreal, 2.0 homes, $374,333
  • Regina, 2.2 homes, $328,586
  • Saskatoon, 2.2 homes, $329,654
  • St. John’s (NFLD), 2.5 homes, $294,006
  • Winnipeg, 2.5 homes, $297,897
  • Halifax-Dartmouth, 2.6 homes, $284,037
  • Quebec City, 2.8 homes, $266,072
  • Saint John (NB), 4.2 homes, $172,803
  • Fredericton, 4.4 homes, $166,135
Previous Post

Fewer Ontario Foreign Real Estate Buyers, A Third Bank of Canada Hike, and the Purrrfect Listing: Weekly Real Estate News Recap

Next Post

When Can You Evict a Tenant in Ontario?

Penelope Graham

Penelope Graham

Penelope Graham is the Managing Editor at Zoocasa, and has over a decade of experience covering real estate, mortgage, and personal finance topics. Her commentary on the housing market is frequently featured on both national and local media outlets including BNN Bloomberg, CBC, The Toronto Star, National Post, and The Huffington Post. When not keeping an eye on Toronto's hot housing market, she can be found brunching in one of the city's many vibrant neighbourhoods, travelling abroad, or in the dance studio.

Related Posts

A family with kids on the beach
Affordability Reports

Skipping One Disney Vacation Could Put You Up to 20% Closer to Homeownership in These U.S. Cities

May 26, 2025
A luxury mansion in Florida with a boat in front of it.
Affordability Reports

The Middle Class Housing Gap: What Lower vs. Upper Earners Can Afford Across the U.S.

May 14, 2025
Scenic view of Calgary
Canada

February Home Sales See Steepest Monthly Decline in Nearly Two Years: CREA

March 17, 2025

Blog Search

No Result
View All Result

Newsletter Sign-up

Join a community of 130,000+ subscribers. Don't miss important real estate news, market data, and buying and selling tips.

Recent Articles

brunch table with different entrees

You Can’t Eat Your Way Out of the Housing Crisis

June 23, 2025

10 Cheapest Homes For Sale in Florida: Where to Find Budget-Friendly Options in the Sunshine State

June 22, 2025
Attendees relax on the grass at a vibrant music festival, engaging with friends and enjoying the lively atmosphere.

7 Summer Festivals That Might Just Help You Choose Your Next Canadian City

June 21, 2025
Interior view of a bathroom with a shower, sink, and toilet, showcasing a clean and modern design.

Everything Shower Spaces: The Wellness Upgrade Gen Z Buyers Want Now

June 20, 2025

Featured Listings

5 Canadian Cottage Regions That Make the Perfect U.S. Buyer Getaway 

June 15, 2025

From Skyline Views to Private Escapes: 5 Luxe Calgary Homes for Sale

June 10, 2025

What it Means When a Home is Listed for $1

June 7, 2025

6 Can’t-Miss Victorian Homes for Sale in San Francisco Right Now

June 2, 2025
first-time home buyer programs and rebates

Social Media

250 The Esplanade Suite 408 Toronto, ON M5A 4J5

Stay Connected

  • Blog Home
  • For Buyers
  • For Sellers
  • Real Estate News
  • Mortgage News in Canada
  • Free Guides (PDF)
  • Real Estate Infographics
No Result
View All Result

Zoocasa © 2007–2022. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA.