Canadian Housing Market News 2023

The housing market was hot over the last few years thanks to lower-than-average interest rates. If you’re looking to buy a home or sell your home, you’re probably wondering if you should hold off or try your luck. At this time, it isn’t the most ideal time to sell your home as you’re going to get less money for it than you would have when the interest rates were low.

If you’re looking to get a mortgage, you may be able to purchase for less than you could a year ago but you’ll be dealing with much higher interest rates. It’s harder to meet the requirements for a good mortgage rate at the moment as the CMHC changed protocols based on the change in interest rates. However, for those who have excellent credit, the interest rate can be reduced, which is a silver lining. There are a few facts you’ll want to know as a Canadian looking to get in or out of the real estate market in 2023.

Canadian Housing Market Stats


  • There was a small increase in prices that occurred in August/September 2022.
  • Sales during September 2022 were down 31% to 34,989 transactions.
  • Average property prices have fallen by 22% over the past seven months.
  • Factors for the decrease in property sales include a hike in mortgage rates due to the increase of Bank of Canada rates.
  • In September 2022, the average house price was $640,480 across the country.

Housing Market by Province


On average, the housing prices across Canada are down 6.7% year-over-year but it does vary between each province. Some areas have seen declines while others are seeing increases. The rising interest rates of any type of borrowing has caused “cooling off” of the housing market.

Ontario


In September, the average price of a home was $836,300. This was an increase but overall, there has been a decrease when viewed month to month. The annual decline is 5.7% and has brought a negative price growth to the overall housing market in Canada. If you’re looking to buy in the Toronto area, you’ll be able to purchase for less than before. Prices in Hamilton have decreased by 2% while Brampton has seen a decrease of 6%.

Maritime Provinces


Provinces like Halifax are doing well and are showing to perform better than anywhere else in the country. PEI has seen a 15% price growth with houses on average at $393,940. New Brunswick has a 17% increase in the price of home and for Nova Scotia, it’s 7.3%. The average price for a property in Halifax-Dartmouth is $498,895 and in Great Moncton, it’s $321,600.

The Prairies


The Prairies include provinces Alberta, Saskatchewan, and Manitoba. In general, this housing market was behind the other provinces but this is now a benefit. In Alberta, housing prices were up 3.9% in September. In Calgary, they were up by 5% with the average home price being $499,484. Edmonton has seen a decrease of 0.7% annually. Saskatchewan is down by 3% at the moment while Manitoba has seen a 4.3% increase in home prices.

British Columbia


British Columbia has long been the most expensive place in Canada when it comes to buying a home. Even the smaller towns that are far from Vancouver have risen exponentially, especially during the years of low interest rates. The average home price increased to 1.7% at $927,119. The hot housing markets around BC include the Okanagan, which saw in increase of 16%. In the Kootenays, there was a 9.3% increase.

Greater Vancouver has the highest average home price at $1,232,213, which was a 4.9% increase year-over-year. Victoria saw a 9% increase with average home prices of $967,046, up 9%. The Fraser Valley saw housing prices decline by 5.3% to $952,076. It’s not a good time to buy in British Columbia if you don’t have to. Even doing renovations through a home equity loan is ill advised for now due to the high interest rates.

Quebec


Quebec if doing well right now with home prices increasing by 3.3%. The average home price in Montreal is up to 2.8% while Quebec is also seeing increases. There have been slight increases to other areas of the province like Trois-Rivières, Sherbrooke, and Gatineau.

Mortgage rates have risen quite a lot with the inflation rate currently at 7%. The Bank of Canada has been hiking interest rates, which has eased the cost of a home. The issue is that interest rates can continue to rise. When looking at the stats, it’s likely there will be a continuous increase. Right now, prime rates are at 5.45%. This is the highest it’s been since 2008. For anyone who takes out a big loan, this will have a major impact on how much you pay in interest.

There have been more restrictions put into place by CMHC when it comes to getting mortgage insurance too. You’ll want to have a high credit score and very little debt to be accepted for a mortgage because you can’t get a mortgage without mortgage insurance. There has also been an increase in the mortgage stress test benchmark rate.

This has also made it harder for Canadians to qualify for a mortgage. Fixed-mortgage rates rose to 4.00%, which put the mortgage stress test above 5.25%. As a consumer looking to buy a home, if you don’t meet the requirements, you won’t get a low interest rate on your mortgage.  These are all things to consider as you look into buying a home.

The silver lining is that many areas of Canada are seeing a decrease in housing prices. They may go down even further and if interest rates level out, it could make sense to purchase a home.

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Loraine Couturier

Loraine is from Canada but travels around the world working as a freelance writer.

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