Canadian real estate is in the middle of a price correction, and single-family homes have been hit hardest. Canadian Real Estate Association (CREA) data shows single-family homes, which include detached and semi-detached units, saw prices fall sharply in November. Virtually every market is now off its all time high, with the worst performing down nearly $500,000 since peaking.
Canada’s National Real Estate Market Has Seen Prices Fall $172k
Canada’s single-family real estate market has been hard hit after years of frothy growth. A benchmark home fell to $794,000 in November, dropping 1.4% (-$10,900) in the month. Prices are now 17.8% (-$172,200) lower for the segment compared to the peak. The correction is now widespread across the country, with not one market still at the all-time high, and many much lower.
Canadian Real Estate Prices Are Down In Every Market
The benchmark price of a single-family home in Canada’s major real estate markets.
Source: CREA; Better Dwelling.
BC’s Single-Family Real Estate Market Is Falling Sharply
Single-family home prices fell in over 90 of single-family price indexes published by the industry. The largest drop in percentage points were Simcoe (-4.4%), Fredericton (-3.9%), and Lakelands (-3.0%). Shedding even a point in a single month is a big move, so these single-family home price declines are massive.
British Columbia (BC) real estate was slow to correct, but it’s making up for lost time. Single-family markets in the province made up the top largest price declines in dollar-terms. Greater Vancouver (-$35,6000), Fraser Valley (-$31,300), and Victoria (-$28,800) were at the bottom of the list for monthly performance. The rate for each of these markets was also larger than the national move.
Ontario Real Estate Has Seen The Worst Corrections From Peak
Ontario is home to the largest percentage point drop from peak in Canada. Single-family homes fell the most in Kitchener-Waterloo (-27.7%), Cambridge (-27.0%), and London-St. Thomas (-26.7%). All three of these markets have made declines large enough to be called a crash. Since they were all in pricey Ontario as well, the declines amount to at least $223,600 in lost equity.
Canadian Real Estate Prices From Peak ($)
The dollar value change of the benchmark price of a single-family home in Canada’s major real estate markets, from peak to November 2022.
Source: CREA; Better Dwelling.
Speaking of massive dollar declines, Ontario once again leads in this area from peak with BC putting up a fight. The biggest drop in dollar terms was Oakville-Milton (-$478,600), with single-family homes shedding a quarter of their value in just a few months. It was followed by Mississauga (-$376,000), and Fraser Valley (-$369,800).
Toronto single-family homes have seen the fourth largest price drop when measured in dollars. The benchmark price has dropped -20% since peaking, which is a drop of $320,200 in just nine months. That’s an average decline of $35.5k per month since February—and officially makes it enough to be considered a crash. Though the market as a whole is just a few points shy of being considered a total crash.
Canada’s single-family real estate markets have seen a sharp correction, but not far enough. At the national level, despite prices falling nearly a fifth of a million dollars, they’re only back to August 2021 levels. That should be an indication of just how out of whack the country’s real estate has been over the past few years.