The Canadian housing market has seen a shift in 2020 due to economic and health-related disruptions. Here are 8 key points about the housing market in Canada. That you should be aware in 2023.
The average home price in Canada is approximately $486,000 CAD. Home prices across the country have been increasing since the spring of 2020.
An average of just under 400,000 CAD in April 2020 to nearly 486,000 CAD at the end of December 2020.
The biggest increases were seen in British Columbia and Ontario.
Demand for homes has continued to remain high despite slower economic growth. Due to low interest rates and pandemic-related changes to workplace practices like work from home mandates.
Vancouver, Calgary, Toronto and Montreal have higher average home prices than other cities. Within their respective cities as well as other large cities throughout Canada.
Due to rising demand for rental properties caused by decreased supply coming on the market. Vacancy rates are dropping while rent costs are climbing throughout most parts of Canada.
Especially urban centres like Toronto and Montreal. Where demand remains highest relative to available supply.
Making these two cities some of the most difficult places to find affordable housing options. (but also potentially lucrative markets for investors).
Lower rates of speculation on property have also been attributed to more regulations and taxes applied on foreign buyers. Preventing prices from skyrocketing.
But also keeping some potential buyers out of certain markets. Being forced into paying higher premiums depending on their circumstances (citizenship status etc).
Finally, with rising house prices it is important that potential buyers take step. Such as obtaining pre-approval for mortgages before entering into agreements with sellers.