Amid the pandemic's second wave, Canadian homebuyers have been active, so much so that home sales set a new record in January, with 36,897 properties changing hands -- a 35.2% increase on a year-over-year basis.
At the same time, the actual national average price of a home sold also set a new record after reaching $621,525, a 22.8% jump from the same month last year. Fuelling prices was a sharp drop in new listings last month, down 13.3% from December.
The result? Canadian home buyers are now facing the tightest real estate market on record, with a buying frenzy that shows no signs of slowing down. Though, there is one obstacle standing in the way of potential buyers: inventory — which is running very low in many parts of the country, especially for single-family homes.
But, of course, there are still a number of affordable pockets throughout the country, where you can still find homes currently priced below the average.
READ: Average Home Prices in Canada Now More Than 40% Above U.S. Levels: BMO
To get an understanding of where these affordable areas are, Zoocasa looked at the average home price in 25 regional housing markets and ranked every market based on the annual rate of growth of the average home price. Zoocasa also identified where the average home price fell below and above the national average home price.
Of the 25 markets reviewed, 24 markets posted a year-over-year increase in the average home price, ranging from 5% to 41%, and just one market -- Regina -- saw the average home price decrease by 3% to $273,885. What's more, 12 markets, or almost half of the areas included in the report, posted a growth in the average home price of at least 20%.
Zoocasa also found that, despite home prices growing in every region but one, there are 18 markets where the average home price remains below the national home price average of $621,515.
According to the findings, Saint John took the title of Canada’s most affordable housing market in January, despite an 8% increase in the average home price year-over-year to $199,853. On the other hand, the Greater Vancouver-area recorded the highest average home price in January at $1,089,096 -- an 11% year-over-year increase.
There were an additional six regions that currently also have home prices over the current average including the Niagara Region, which recorded a 41% year-over-year increase to $651,138; Hamilton-Burlington (up 26% year-over-year to $787,867); the Fraser Valley (up 26% to $944,996); Kitchener-Waterloo (up 24% to $694,050); Victoria (up 19% to $868,509); and the Greater Toronto Area (up 15% to $967,885).
However, those looking for more affordable options, you can find homes below the current average in the following 18 regions:
1. London and St. Thomas
- Average Home Price: $608,049
- Annual Price Growth: +41%
2. Sudbury
- Average Home Price: $356,633
- Annual Price Growth: +38%
3. Windsor-Essex
- Average Home Price: $492,480
- Annual Price Growth: 31%
4. Halifax-Dartmouth
- Average Home Price: $433,000
- Annual Price Growth: +31%
5. Ottawa
- Average Home Price: $591,413
- Annual Price Growth: +26%
6. Trois Rivières, CMA
- Average Home Price: $225,694
- Annual Price Growth: +24%
7. Gatineau CMA
- Average Home Price: $338,679
- Annual Price Growth: +21%
8. Montreal
- Average Home Price: $516,350
- Annual Price Growth: +20%
9. Sherbrooke CMA
- Average Home Price: $317,545
- Annual Price Growth: +19%
10. Thunder Bay
- Average Home Price: $258,738
- Annual Price Growth: +16%
11. Calgary
- Average Home Price: $518,237
- Annual Price Growth: +15%
12. Quebec CMA
- Average Home Price: $313,811
- Annual Price Growth: +14%
13. Winnipeg
- Average Home Price: $320,814
- Annual Price Growth: +10%
14. Saguenay CMA
- Average Home Price: $206,242
- Annual Price Growth: +10%
15. Saint John
- Average Home Price: $199,853
- Annual Price Growth: +8%
16. Saskatoon
- Average Home Price: $331,555
- Annual Price Growth: +7%
17. Edmonton
- Average Home Price: $375,874
- Annual Price Growth: +5%
18. Regina
- Average Home Price: $273,885
- Annual Price Growth: -3%
You can see how the rest of the region's ranked in the infographic below.
You can read the full report here.
