According to the Canadian Real Estate Association (CREA), the benchmark home price has declined significantly into February. It’s notable that the busy season for 2019 will have Canadian real estates markets shivering, as their price growth hits the negative region. A decline of this magnitude hasn’t been seen since 2009.
Last month, the average home price in Canada dropped so significantly, you’d have to look back at 2009 to even find a comparison of equal magnitude. According the CREA, the benchmark price fell to nearly $615,300. When comparing this home price that of last year, during the same month, it should be noted that this year’s benchmark is 0.13%. Considering this annual decline is the only one to ever be outside a recession, and hasn’t been seen since 2009, this is very significant.
In the spans of 6 month, the benchmark price has dropped approximately 1.45%. These six months are significant as the price dropped throughout all of them.
Although the overall benchmark price is in decline, some cities did see some improvement. Ottawa’s typical home price rocketed up 7.41% when compared to that of last year, during the same month. Guelph saw an increase of 6.84%, and Niagara saw an increase of 6.54%. It’s important to note that most increases happened in Southern Ontario. Western Ontario on the other hand, is in significant decline.
Vancouver’s real estate markets saw a decrease of 6.1% since last year. Regina saw a drop of 5.13%, and Edmonton saw a decrease in 4.49%.
It’s important to note that only three real estate markets are maintaining peak price. Those three are Ottawa, Niagara, and Montreal. Montreal, the least expensive of the three, is sitting at an increase of 6.24% since last year. Niagara, is sitting on an increase of 6.54% since last year. At the top, and most expensive of the three, is Ottawa. Up nearly 7.41%, Ottawa is in the lead by a huge margin.
It should be noted that several markets took huge drops. Edmonton is down nearly 15.54% from its peak. Regina is down 14.59% from its peak, and Barrie is down 13.91% from its peak. Toronto, although not taking as heavy of a hit, is down 5.81% from their all time high, and Vancouver is done nearly 8% from their all time high.
With the busiest time of the year for home buying approaching, future statistics should be very interesting.