29 Jan Recent trends in Canadian housing market
The Canadian housing market has been witnessing significant changes in recent years, characterized by soaring prices and affordability challenges.
Come on a journey with us, to uncover the increase in Canada home prices and how it’s affecting first-time buyers, especially in bustling cities like Toronto, Vancouver, and Montreal.
Join the adventure of exploring various regions, unraveling the mysteries of government rules, and diving into the exciting forecasts that paint a vivid picture of what lies ahead for future Canadian homeowners.
Let’s embark on this friendly exploration together!
Rising prices for the to-be home owners
Home affordability in Canada has seen a significant decline since 2020.
Families are dedicating a larger portion of their income to the housing expense due to the rise in mortgage. In just two years, there was a significant rise in mortgage from 46% to 69%, making the home ownership more challenging.
In November 2023, Canada housing market had a gentle shift in national home sales, as shared by the Canadian Real Estate Association.
The numbers showed a tiny 0.9% decrease in home sales from the previous month. Compared to November 2022, the activity for that month was 0.9% less, suggesting a steady, though slightly quieter, market.
Regional Differences in Canadian Housing Prices
Discovering homes across Canada reveals a delightful diversity in prices. Big cities like Toronto and Vancouver often show a surge in prices, while other places see more gentle, steady growth. The reason being, changes in job opportunities, more number of immigrants and the overall economic health in each community.
Friendly Government Rules and Their Impact on Homes
The Canadian government rules are turning friendly for the to-be home owners. These rules are like guides shaping the housing market. They put in place clever ideas, such as taxes and tests, to make sure everything stays fair and balanced. These rules not only keep things in check but also help slow down price growth in certain areas.
Looking into the Crystal Ball
In November 2023, the average Canada home price across the country stood at $646,134. During the same month, there were 35,013 home sales nationwide, reflecting a 16% year-over-year increase.
In Ontario, the Canada housing market grew by 1% compared to last year, with the average home price at $833,525. Yet, like the national trend, there was a 3% decrease in the Ontario housing market from the previous month.
Let’s peek into the future of Canadian homes!
It is evident that the average re-sale house price might take a little dip to about 789,000 Canadian dollars by 2024. This is like a friendly wave, marking the first-time prices might go down since 2019. In addition, according to a recent study, British Columbia might see a gentle decrease in housing price from 1.1 million to one million by 2024.
The Challenges of Home Hunting awaits Brighter Days
The Canadian housing journey has its share of challenges. The housing prices are high, and finding a home that fits the budgets can be a tougher task.
But here’s the good news. There are signs that changes, like new rules from the government and possible drops in housing prices, might be just around the corner.
These modifications could make it easier for all the families who dream of being the home owners, to find homes that not only feel like one but also fit snugly into the budgets.