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Canada's national benchmark home price peaked at $760,600 in June 2023, but over the subsequent five months, it experienced a downturn, dropping over three percent in most major markets, including Vancouver, Toronto, Ottawa, and Winnipeg. High borrowing costs have contributed to this trend, impacting demand. However, this downturn has made home prices more aligned with the budget of prospective buyers.
Zoocasa analyzed benchmark price data for 21 major Canadian markets and found that most cities experienced a drop of over three percent in benchmark prices within five months. Some cities even saw prices fall below the levels of the previous year. Notably, Kitchener-Waterloo in Ontario faced the most significant hit, with its benchmark price declining by 8.9 percent since June and 0.6 percent since the previous year.
While the majority of markets experienced price declines, three cities—Calgary, St. John's, and Saint John—saw an increase in home prices since June. Calgary had the most significant increase, with prices rising by 10.5 percent since November 2022. However, despite this increase, Calgary's November 2023 benchmark price of $557,400 is still relatively affordable.
When examining single-family home and condominium prices, seven Ontario cities, including Kitchener-Waterloo, experienced the largest drops in benchmark prices for single-family homes. Conversely, condominium prices in some markets like Kitchener-Waterloo, Greater Toronto, and London & St. Thomas saw more than a four percent drop since June. However, condominium prices increased in nine cities across the country, with Saint John and St. John's leading with respective increases of 12.9 percent and 7.4 percent since June.
Read the full article on: REAL ESTATE MAGAZINE