The Canadian economy’s strength has historically driven Canada’s housing market. However, recent economic trends have contributed to an increase in homes available for sale, which has led to a decline in home prices across the country. This article will discuss current trends and how they might impact future buyers and sellers.
Inventory
The inventory of unsold homes in a market is a good indicator of market health. A high level of the list can suggest that there’s too much supply, which leads to lower prices and reduced demand. Conversely, low inventory levels indicate too few stores, higher costs, and increased competition between buyers.
In Canada, the number of homes on the market has increased since late 2014; however, it remains below historical averages. In contrast, in the U.S., home sales have remained strong while housing inventories remain low; this signals intense competition between buyers as they compete for fewer properties available for purchase (although recent data suggests an increase in new listings).
Housing markets are dynamic: prices change as buyers and sellers negotiate based on factors like interest rates, mortgage rules, or employment conditions – but these factors don’t necessarily affect all regions at once or at equal intensity.
Low Prices
Prices are low but less common than in the 1990s.
Prices have been falling since peaking in 2014.
The most recent price data shows that the average home price is $497,515 (all housing types included). It puts us well below where we were before 2008’s crash: in January 2000, for example, the average home cost about $528,000. And you go back even further to January 1994. Then, when Bob Rae was premier and people thought that Alanis Morissette might be excellent—the average home would have cost you $226,600 less than today: just over $271k instead of nearly a half-million dollars.
Economic Downturn
The Canadian housing market is in a slump, and it’s not getting any better. The economy has taken a hit, and the real estate market is also suffering.
Foreclosures are up. Housing prices have fallen by 20% across Canada since their peak in 2017-18. And Toronto has seen an even more significant drop: 30%. As of last year, there were more than twice as many homes for sale than there were buyers (4 million listings compared to 2 million prospective buyers). Plus, there’s too much supply—which means prices will continue to fall unless something changes soon!
Current trends in Canada
- Inventory is super low in Canada.
- Prices are super soft too.
- It will continue until the economic downturn ends.
Canada is a great place to live. The country has a lot to offer, from its rich culture and history to its natural beauty and peaceful lifestyle. As we’ve seen from the data above, housing prices may be rising, but this hasn’t deterred Canadians from buying homes—and as long as interest rates remain low, there are plenty of reasons for them not to!
