Canadian real estate is still moving lower, but it’s still a long way from correcting the recent boom. Canadian Real Estate Association (CREA) data shows the price of a benchmark, or typical, home fell once again in January. Home prices have now rolled back more than a year’s worth of gains.
Canadian Real Estate Prices Are Over $100k Lower Than Last Year
Canadian real estate prices continued to fall last month. The benchmark price fell 0.5% (-$3,300) to $713,700 in January. That brings prices 12.5% (-$103,300) lower than last year. A fairly steep cut, but prices are still very lofty compared to just a few years ago.
Canadian Real Estate Prices
The price of a typical home across Canada, in Canadian dollars.
Source: CREA; Better Dwelling.
Annual Growth Is The Lowest In The Benchmark’s History
The annual growth rate continues to plummet further. The 12.5% decline is significantly larger than the 7.5% drop reported in the prior month. The 12-month change in price now reveals the sharpest drop in the history of the benchmark. It’s a huge change from this time last year, when record growth was approaching.
Canadian Real Estate Price Growth
The 12-month change in Canada’s benchmark home price.
Source: CREA; Better Dwelling.
Canadian Home Prices Are Now $150k Lower Than Peak
Just how far have prices rolled back? The benchmark peaked in March 2022, as did prices in most local markets. Since then, prices have dropped 17.8% ($-154,600) lower, rolling all the way back to August 2021 levels. It’s a huge drop, with prices having rolled back more than a year.
The absurd gains made over the past few years far outpace the recent drop. While $150,000 sounds like a lot, prices remain 30.9% ($168,400) higher than 2020. Technically, prices haven’t even fallen to the point where it can be referred to as a “crash.”
Canadian home prices continue to fall, but it’s going to be hard to wipe out the past few years. Growth was so absurdly high, it’s nearly impossible without extended price stagnation. However, that’s exactly what experts see, forecasting the drop is around halfway to the bottom, and it will be followed by market stagnation.
