Canada

Canadian Real Estate Prices Fall For A Third Month In A Row

Canadian Real Estate Prices Fall For A Third Month In A Row

Canadian real estate markets are taking a breather. Canadian Real Estate Association (CREA) numbers show 2017 is the first-time in years we’ve seen national prices decline. Markets that made the largest gains over the past year, are seeing the largest monthly drops. Meanwhile, cities that did not boom over the past year, are finally starting to see prices inch higher.

Real Estate Prices Drop Across Canada

The aggregate price across all of CREA is down from the month before, but still in positive territory. The aggregate benchmark price, a.k.a. the price of a typical home, across all Canadian urban centres reached $602,400, a 0.77% decline from the month before. This represents an 11.25% increase when compared to the same time last year. Let’s be honest, 11% is nothing to sneeze at – multi-month declines are the thing to pay attention to.

Better Dwelling, Source: CREA.

Worth noting that before 2017, the last time aggregate home prices saw a monthly drop was in 2013. In 2017, we’ve now seen prices drop three months in a row. The last time we’ve seen three months in a row, was in 2012. The market could very well be overdue for a pullback, since prices have been climbing for years now.

Better Dwelling, Source: CREA.

Toronto Real Estate Has Largest Price Drop

The largest monthly price drop in Canada was in Southern Ontario. Toronto saw the composite benchmark price reach $755,400 in August, a 2.28% decline from the month before. This makes the price 14.26% higher than the same month last year. Guelph saw the benchmark drop to $411,600 in August, a 1.98% decline from the month before. Prices in Guelph remain 19.51% higher than the same time last year. Both cities saw large monthly drops, but the annual gains are still very high.

Better Dwelling, Source: CREA.

Saskatoon Real Estate Sees Largest Price Increase

The largest monthly price increases were in the prairie province of Saskatchewan. Saskatoon saw the composite benchmark drop to $316,700 in August, a 2.29% increase from the month before. This represents a 0.28% decline from the same time last year. Just a reminder that even though it had a huge monthly gain, Saskatoon is still behind inflation.

Regina had the second highest composite gain in the country. The benchmark price climbed to $313,000 in August, a 2.02% increase from the month before. This represents a 5.64% increase, when compared to the same month last year. Both cities saw large monthly gains, but the annual gains are behind the majority of the country.

Real estate markets across Canada are cooling down, coming off of a record year. Multi-month prices drops are never great, but prices rose so high, they have a little room for consolidation. Although now a price drop of only 10% would drop prices back to last year. Just a 17% decline would wipe out the greatest real estate boom in Canadian real estate history.

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10 Comments

  • Reply
    No more Hipsters! 3 months ago

    Haha! Good for those Toronto Yuppies and Hipsters to FEEL THE BERN!
    Let the real estate prices COLLAPSE in Toronto!!!!!
    Hahahahahahahaha! Who is going to pay for your $6.00+13% tax on your Starbucks coffee now you SJW Hipster? HAHAHAHAHAHAHAHA

    • Reply
      Bluetheimpala 3 months ago

      Damn it! I was too busy at my yuppie job to hop on here before ‘NMH!’ (I just gave you a pet name…).

      Arghhh, you have me all frazzled now…

      1) I like the the heavy CAPS…shows everyone you’re able to use a computer semi-competently.

      2) Loving your catchphrase ‘Feel the Bern’, like this is some liberal Bernie Sanders campaign post with him looking all scrunch angry-faced.

      3) Prices can’t collapse silly. $ radiates outward and contracts inward. If Toronto ‘BERNS!’ (see what I did there!!!), then everyone is taking a huge haircut…unless there is actually pent up demand to live in Milton or Bolton or Ajax or nowhere vs one of the best cities in the world.

      4) You must be a foreign troll…when you are a native, you don’t mention what the tax rate is because,well, everyone knows what it is. Also, unless they are offering hand jobs with the lattes I don’t think any drink at starbucks is $6.00…and who in 2017 uses starbucks are the example of unbridled hedonism? Unless you’re basing your cultural insights on a dossier…in moscow…developed 10 years ago…by a russian…named Yuri…who hates borscht but loves loves dumpings. Oh Yuri…you cray cray.

      5) Bye pumpkin, see you tomorrow.

  • Reply
    Brian 3 months ago

    What am I supposed to see in the charts? It is still sky-rocketing. Small ripples in the big trend.

    • Reply
      dana 3 months ago

      small tends build bigger trend… the peek in March-June 2017 will show the biggest drop YoY in March-June 2018. 😉

  • Reply
    Al Daimee 3 months ago

    August data does not really have enough sales to indicate a greater trend. It’s one of the slowest months of the year. Besides, real estate is not meaningfully measured in months. The smallest relevant unit of measure should be in quarters.

    I’m betting that the next 2 quarters will paint a different picture as the economy is growing.

    • Reply
      Neo 3 months ago

      The economy is growing but credit is contracting due to rising interest rates and things like B20 legislation coming online in October.

  • Reply
    John 3 months ago

    The Canadian real estate bubble is a farce. Median income has nothing to do with home prices in most countries around the world. It is simply a case of the rich owning property and the poor renting property. The concept that the average Joe should own a house is dying. It’s ok…it works everywhere else

    • Reply
      bob 2 months ago

      Countries with >90% ownership :
      Romania, Slovakia, Cuba

      Countries with the highest no. of renters (around 50%):

      Germany, Switzerland, Hong Kong

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