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Home prices fell the most in these Canadian cities

Where home prices fell the most in Canada

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They are as safe as houses, they say, but lately not so much.

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Many homebuyers who took the plunge a year ago have seen their property value decline through 2023.

Not all, mind you. A comparison of home prices in 67 cities in Canada between December 2022 and 2023 by Canadian real estate site Point2 revealed that single-family homeowners in 18 cities and condo owners in 26 cities have seen their homes lose value last year.

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“The past year has shown that a real estate investment can sometimes backfire,” Point2’s report states. “This means that the new Canadian owners of these unfortunate cities may have to wait longer than others to generate wealth.”

Unsurprisingly, prices have fallen the most in regions that experienced crazy gains during the pandemic real estate boom.

Burlington, Ontario, leads the losses. Anyone who bought a single-family home here in late 2022 lost $163 a day for the next year, wiping nearly $60,000 off what they paid for it, the report said.

Homeowners in Kitchener, Mississauga and Markham also took a hit, losing $39,850, $41,740 and $56,043, respectively, of their home’s value over the year.

“In percentage terms, declines in home prices in these cities might appear benign, approaching a meager 5 percent,” the report says. “But that percentage drop translates into a stronger net amount, especially considering the difficult market conditions during which these homeowners made the move.”

Condo owners in many cities are worse off than single-family home owners.

“With 26 markets experiencing year-over-year price declines for condominiums, the price correction for this segment is even more widespread,” the report says. “What is considered the most affordable housing option has become progressively cheaper, putting condo owners’ capital hopes on hold.”

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Condo Owners in Mississauga, Ontario. were the hardest hit, losing $100 per day during 2023, wiping $36,000 in value off the purchase price.

Victoria, BC and Barrie, Ontario. condo owners lost $28,250 and $28,000, respectively.

The largest percentage drops occurred in Lethbridge, Alberta, where condo prices fell 6.1 per cent, and in London, Ontario, where they fell 6 per cent.

Not everyone lost money last year. Prices in Vancouver, home to Canada’s most expensive real estate, continued to rise 9 per cent from last year, meaning a homeowner who purchased a single-family home in late 2022 earned $572 a day, or $208,858. dollars worth in December 2023.

Homeowners in Calgary and Red Deer, Alberta, Surrey and Coquitlam, BC, Quebec City and Sudbury, Ontario. There were also substantial gains in single-family homes. Even in Toronto, home values ​​increased by $5,523 over the year.

Condo owners in Coquitlam, BC, Halifax, Richmond, BC and Calgary saw the value of their units increase by more than $50,000 in just one year.

And the tide may be turning, Point2 said. In November, home values ​​were falling in 25 big cities, but a rebound in the housing market in December reduced that number to 18.

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construction permits
National Bank of Canada

The value of building permits may seem trivial, but it can also offer insight into the state of the real estate market. Canada desperately needs more living space, but today’s chart doesn’t offer much encouragement. Building permits plunged in the fourth quarter in almost all of Canada’s major markets.

Nationally, building permit values ​​fell 9 percent from the previous quarter and nearly 2 percent from a year ago. This last quarter had the lowest quarterly value since the third quarter of 2021.

The data, released this week, is one reason National Bank economists continue to expect an economic contraction in 2024 and that the Bank of Canada will cut interest rates sooner than markets expect.

  • The Government of Canada is holding a national summit today on combating auto theft. Crime has become a nationwide problem, with a more than 50 per cent increase in robberies in Ontario and Quebec.
  • The Toronto Regional Real Estate Board hosts its 2024 Market Outlook and Year in Review event.
  • Flair Airlines CEO Stephen Jones will hold a press conference to present a review of 2023 and predictions and goals for Flair and the Canadian airline industry in 2024.
  • Today’s data: Unemployment claims in the US
  • Profits: BCE Inc, Cameco, Sun Life Financial Inc ConocoPhillips, Thomson-Reuters Corp, Lightspeed Commerce Inc, Cineplex Inc, Aurora Cannabis Inc, Bombardier Inc, Brookfield Corp, Saputo Inc.

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Stock markets February 8, 2024

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McLister on mortgages

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Today’s Posthaste was written by Pamela Heaven, with additional reporting by staff at the Financial Post, The Canadian Press and Bloomberg.

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