After reaching record-highs in early 2022, home prices across Canada began to tumble as interest rates repeatedly rose.
According to data from the Canadian Real Estate Association (CREA), the national average home price was $816,720 in February. By December, it had fallen to $626,318. However, the declines were not uniform across the country, with prices closing in on pre-pandemic levels in some markets, and barely off their peaks in others.
To ascertain where prices remain elevated and where affordability can still be found, Zoocasa analyzed home prices from January to December 2022 to determine the average for 48 Canadian cities.
With an average price of $276,450, Saint John, New Brunswick, was deemed the most affordable housing market in 2022. The Saint John Real Estate Board noted that demand had returned to pre-pandemic levels by December, with sales falling 37.4% year-over-year and new listings down 25.4% annually.
Despite an onslaught of Ontarians moving east during the pandemic, the Atlantic Provinces still retained affordability -- including Saint John, four of 2022's five cheapest housing markets can be found on the east coast. The only outlier was Sault Ste Marie, Ontario, with an average price of $291,967.
READ: Three Ontario Markets Where You Can Still Find Affordable Housing
Fredericton, NB ($284,667), St. John's, Newfoundland and Labrador ($312,858), and Greater Moncton, NB ($320,817), also appeared in the bottom five.
On the other end of the affordability spectrum lies Oakville-Milton, ON. The region's average price of $1,393,608 made it the most expensive in Canada in 2022. Although prices had fallen to $1,280,600 by December, they peaked at a staggering $1,646,900 in February.
Zoocasa noted that the top 10 most expensive cities were "easy to predict," with all 10 located in either Ontario or British Columbia. Greater Vancouver ($1,199,542) and Greater Toronto ($1,195,950) placed second and third, respectively, followed by Mississauga and ($1,184,692) and the Lower Mainland ($1,143,233). In sixth place, Fraser Valley ($1,083,393) rounded out the cities with over $1M averages.
Looking at the year ahead, Jill Oudil, Chair of the CREA, said the housing market's adjustment to higher rates may be "mostly in the rear-view mirror," luring more buyers off the sidelines come spring.
The CREA expects national home prices to continue their downward descent in 2023, and is forecasting a 5.9% annual decline to $662,103.
Zoocasa
