Most Canadian real estate markets have seen prices decline, but they aren’t nearly as large as many may assume. Canadian Real Estate Association (CREA) data shows the composite benchmark (typical) home price declined significantly at the national level. However, breaking those numbers down shows most of that decline was concentrated in provinces like Ontario, BC, and Nova Scotia. Despite weak sales, prices have generally remained sticky as sellers hold out for lower rates.
A Typical Home In Canada Is Down $126k From Peak, But Retained Bigger Gains
Canadian real estate prices are still in deep correction territory. A typical home fell to $855,800 in March, down 14.7% (-$126,100) from the peak reached exactly two years prior. However, prices remain 32% (+$176,800) higher than they were when rates were cut back in March 2020. A sharp correction, but the rollback wasn’t even close to reversing the gains.
Canadian Real Estate Prices Still Off Peak In Most Provinces
The composite benchmark prices of a typical home across Canada and by province. Manitoba is excluded due to a lack of benchmark price.
Source: CREA; Better Dwelling.
Ontario, BC, and Nova Scotia Real Estate Saw The Biggest Corrections
More expensive markets have generally seen the biggest market corrections. Ontario (-17.7%) observed the biggest correction, especially around cottage country. In a distant second is British Columbia (-9.3%), followed by Nova Scotia (-6.6%). Note the gap—Ontario’s correction is almost double that of the next province.
Not all provinces have seen a correction though. The benchmark price in Alberta ($507,900) and Saskatchewan ($334,500) have continued to push higher.
Canadian Real Estate Prices Are Still Much Higher Than 2020
Despite most provinces having seen a sharp correction, all have had substantial gains since March 2020. Leading the growth is New Brunswick (+69.4%), Nova Scotia (+60.4%), and PEI (+59.3%). Those increases work out to roughly $120k to $150k over the 4 year span, with only a mild correction having taken place.
On the flip side, the smallest movements since 2020 were seen in Saskatchewan (+20.0%), Newfoundland (+25.7%), and Alberta (+32.9%), helping to provide context as to why two of these markets are currently at their all-time high.
