Canada’s real estate market had its fair share of ups and downs in 2022. After a strong start to the year for many major markets, home prices and demand simultaneously began to dip once interest rates started to rise. Some Canadians are still considering whether moving out of large city centres is the best choice for securing more affordable real estate.
Using data provided by the Canadian Real Estate Association (CREA), we evaluated each city’s overall average price of residential homes in 2022.
Our report offers a comprehensive perspective on market activities and a high-level summary of market trends. A more thorough examination of price and sales patterns for certain property types of interest or at the city, town, or neighbourhood level would benefit prospective home purchasers.
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Lack of Affordability Has Driven Buyers Out of Markets
Nationally, most peak prices hit in February or March, but a steady decline began during April. For the Oakville-Milton area, this trend continued throughout the year. Although homes there have the highest average prices on our list, benchmark prices in this region started the year off even stronger at $1,646,900 in February but fell to $1,280,600 in December.
Similarly, home sales in Brantford dropped by 25.4% annually in 2022 compared to the same period in 2021 due to increasing interest rates, with 2,057 units sold over the year. The benchmark price for single-family homes declined by 13% year-over-year, compared to townhouse/row units seeing an 8.9% decrease and apartments going up by a modest 1.5%.
The demand for housing has been slowing due to a high inventory of properties on the market. Buyers find that prices are too expensive and are hesitant to purchase. However, buyers may find more affordable options in areas with fewer listings and lower inventory, as prices could potentially be reduced. Active residential listings at the end of December numbered 286 units, up 262% from the year before and representing the highest December count in more than five years. The Windsor-Essex County Association of REALTORS® also noted that active listings hadn’t been this high in December in more than five years, with inventory increased by 158.1% from the end of December 2021.
- Read more: Considering Selling? These are the Ontario Markets Where Properties are Moving the Fastest
Slowing Demand for Properties in Saint John and Nova Scotia
In December 2022, the demand for listed properties in Saint John and Nova Scotia returned to pre-pandemic levels. The number of homes sold reported by the Saint John Real Estate Board was down by 37.4% compared to December 2021, while new listings fell 25.4%. There were 88 new residential listings in December 2022, the lowest number of new listings added in December in more than 15 years.
Similar to Ontario, the Prairies are experiencing a need for more affordable options. Many people are not selling their homes because of the lack of affordable housing. Buyers are hesitant to trade if they lose money in the end. In December 2022, the number of homes sold through the Fredericton area was 96 units, a 41.8% decline from December 2021. The number of new listings decreased by 7.4%, with 88 new residential listings added – the lowest in three decades. Additionally, Moncton saw 155 units sold in December 2022, a 38.5% decrease from December 2021.
Oakville-Milton Area is the Most Expensive
Smaller markets like Sault Ste. Marie are experiencing the fastest decline, but Edmonton was a surprise, making #12 on our list. In December, total residential sales fell by 22.1% from November, with 973 sales, while the average price fell by 1.9% to $361,172, according to the Realtors Association of Edmonton.
The top ten most expensive cities were also easy to predict. Oakville-Milton takes the prize of the most expensive homes on average throughout 2022 with an average price of $1,393,608! Greater Vancouver, Greater Toronto, Mississauga, Lower Mainland and Fraser Valley all have average prices over $1,000,000. Homes within Barrie, Guelph, Hamilton-Burlington, Victoria, Fraser Valley, Lower Mainland, Mississauga, Greater Toronto and Greater Vancouver are often significant cities in our market reports.
The affordability of housing has been a hot topic in recent years. The burden on Canadians increases as housing costs continue to rise in many areas. While other regions of the country provide more reasonably priced home alternatives with various perks, property values in some locations continue to be expensive and out of many people’s price ranges. Unfortunately, due to their restricted availability or intense rivalry for desired homes, obtaining these possibilities may take a lot of work.
