We have seen an almost year long correction, and it seems the Canadian housing market has begun to see some sort of normalcy. While the market is still down 9.2% from the record high we saw in 2022, the aggregate price for a Canadian home rose by 2.8% quarter over quarter for the first quarter of 2023. The latest Royal LePage House Price Survey indicates a median price of $778,300.
When we break the statistics down by housing price, we see the national median for detached homes increasing in price by 3.4% quarter over quarter to $808,700. For a condo, the median price saw an increase of 1.8% from quarter 4 of 2022, taking prices to $571,700. Overall, prices are down by 10.7% and 6.7% annually.
What Caused the Price Hikes This Time Around?
The price increases coincided with the pause on interest rate hikes bright on by the Bank of Canada. With this pause in interest rate hikes, some buyers were able to enter the market actively.
Royal LePage statistics show that home sales have been on an upward trend in major markets since the beginning of the year.
From January to February, prices in Greater Vancouver, Greater Montreal and Greater Toronto increased by a minimum of 52%, and for the period of February to March, the increase was 44%. In these same markets, we saw an increase in listings month over month, but there is still a chronic shortage of housing supply across the country.
End of the Price Correction
The substantial market correction ended in March 2023, approximately 12 months after it began. The recovery has been strong, and we are all looking forward to a more normal market going forward. As confidence returns to the market and we are at the end of the correction, the market is still out of reach for some people, as there is still a shortage of homes for sale. If you are still finding yourself priced out of the market, maybe it’s time to consider building your home. Give us a call and let us help you realize your dream of home ownership.
Home Price Trends for Quarter 4
The new prediction from Royal LePage is that the national aggregate price will increase 4.5% in Q4 of 2023 over what we saw in Q4 of 2022. Even though we see this upward trend in the revision, the interest rates are still high and will keep the prices regulated for the rest of the year.
Image from Royal LePage
While there are now more buyers in the market, the cost of borrowing is still keeping many buyers on the sidelines. If you feel like you are priced out of the housing market, let’s explore your options for building a home.read more