Canada’s housing market might be seeing some signs of a recovery as home prices increase significantly on a monthly basis, while sales return to levels seen in February 2018 and 2019. For February 2023, Canada’s average home price was $662,437, an increase of 8% compared to last month. This is the highest that Canada’s average home price has been since June 2022. In fact, all provinces saw their provincial average home price increase compared to last month.

However, the national average home price is still down by 19% year-over-year, a carry-over from when Canada’s housing market peaked last year in February 2022. The consequent fall in prices can be attributed to the impacts of higher Canadian interest rates seen over the past year.

Nationally, sales during the month of February 2023 are down 40% year-over-year to 29,569 transactions. That’s up 41.6% from last month, when Canadian home sales were at a 14-year low.

Canada’s MLS Benchmark Price, which measures the price of a “typical” home in Canada, was $715,400 in February 2023. That’s a 16% drop compared to last year, but up by 0.2% from last month. That’s the first time that the benchmark price has increased on a monthly basis since March 2022. Since March 2022, multiple Bank of Canada rate hikes have caused Canadian mortgage rates and prime rates to rise, tempering housing demand.

Ontario

Looking at Ontario, the average Ontario home price was $865,279 in February 2023, a drop of 20% year-over-year but a significant increase of 8% month-over-month. This 8% increase in Ontario home prices compared to last month is the largest increase out of all other provinces in Canada, with the exception of British Columbia. BC’s average home price also increased 8% month-over-month.

The average home sold price in the GTA was $1,095,617 for February 2023, representing a decrease of 18% year-over-year but an increase of 5.5% month-over-month. GTA home sales are down 47% year-over-year, with 4,783 transactions in February. That makes up about 16% of all home sales in Canada this month.

Looking at other Ontario cities, Hamilton’s housing market saw average home prices decrease by 21% year-over-year, and Brampton home prices experienced a 24% annual decrease in prices. Elsewhere in the GTA, Oshawa’s average home price is down 30% year-over-year. The average sold price in Mississauga decreased by 18% over the past year, while Ottawa’s housing market saw a 16% year-over-year decrease in home prices. London’s housing market had its average sold price decrease by 25% year-over-year.

British Columbia

British Columbia is still the most expensive province in Canada to buy a home. The average home price in British Columbia was $941,575 in February 2023, down 15% year-over-year and up 8% compared to last month.

Top movers in BC’s housing market include the Fraser Valley, which has seen average home prices decrease by 27% year-over-year, and Abbotsford, with a 29% decrease year-over-year. Victoria home prices have fallen by 9% year-over-year to $946,196. Greater Vancouver’s average home price for February 2023 was $1,220,469, also down 9% year-over-year.

Quebec

Looking at Quebec, the province’s average home price was $436,800 for February 2023, down 6% compared to last year. It’s also a monthly increase of 5%. The average home sold price in Montreal is down 8% year-over-year to $535,190, up 1% compared to last month.

Atlantic Canada

The Canadian Real Estate Association (CREA) noted that home prices have been starting to rise again in many markets in Atlantic Canada, in addition to parts of Ontario. PEI’s average home price for February 2023 was $377,342, up 6% year-over-year and up 3% month-over-month. Looking at Newfoundland, the average home price in St. John’s increased by 1% month-over-month to $281,918, an increase of 6% year-over-year.

The Prairies

The average home price in Alberta for February 2023 was $427,694, down 11% year-over-year. Saskatchewan’s average home price is down 3% year-over-year, to $290,661, while Manitoba’s average home price is down 11% year-over-year to $324,025. On a monthly basis, Alberta home prices are up 2%, Saskatchewan prices are up 4%, and Manitoba home prices are up 1% month-over-month.

The Prairies’ major urban markets have had similarly mild year-over-year changes. Home prices in Calgary are down 7.5% year-over-year and down 1% month-over-month to $506,685, while Edmonton home prices had a 10% annual decrease to $369,286. Meanwhile, Winnipeg’s average home price is down 3.5% year-over-year, to $349,490.

Canada Housing Market Report by WOWA