This year, the housing market has experienced slower-than-expected sales levels and a significant increase in property listings. Although this has helped stabilize prices in many markets, some still experienced notable price hikes, as a Zoocasa study of Canadian Real Estate Association (CREA) data found.
Single-family home prices in Canada
Of the 26 cities analyzed, three had more than a 10 per cent increase in benchmark single-family home prices since January: North Bay, Sault Ste. Marie and Sudbury. All three haven’t had as many new listings as other Canadian markets.
CREA reports that new listings in June were below the five-year average in Sault Ste. Marie by 11.2 per cent, in Sudbury by 6.6 per cent and in North Bay by 9.5 per cent. Sault Ste. Marie has seen consistent price growth and affordability. Since January, its benchmark single-family home price has risen by 12.6 per cent to $305,000.
Outside of Ontario, the next largest price gain for single-family homes has been in the Prairies. Since January, prices have increased by 9.8 per cent in Edmonton, 9.0 per cent in Winnipeg and 8.4 per cent in Saskatoon. However, home prices have remained below $500,000 in these markets.
Home prices on the rise despite slow spring market
Since January, most markets experienced more than a 5.0 per cent jump in single-family home prices, including the GTA and Greater Vancouver. Benchmark condominium prices, however, have not increased as much.
Of 23 condominium markets, 12 have seen less than a 2.5 per cent increase in benchmark prices since January. Five markets experienced less than a 1.0 per cent increase: Hamilton-Burlington, Ottawa, Niagara Region, Windsor-Essex and Winnipeg.
Condo demand and price growth may be driven by consumer concerns around home prices
Canada’s most affordable condominium markets are also experiencing the most price growth. Units in Saint John, Edmonton and Saskatoon saw the largest price gains since January, increasing by 13.9 per cent, 13.1 per cent and 10.8 per cent, respectively. These locations are seeing growing demand for condominiums, with price growth higher than that for single-family homes. The same is true in London and St. Thomas, Calgary and Regina.
Another recent Zoocasa survey found that 42.3 per cent of respondents cited rising home prices as their primary concern in the current market — something that could be driving demand for more affordable property types like condominiums and contributing to their rising prices.
