Real estate sales in Canada witnessed a significant downturn during the latter part of 2023, with specific regions experiencing more pronounced drops in home prices. The Kitchener-Waterloo area in Ontario, in particular, stood out for its substantial decline.
Real Estate Decline in Canada
Among the 21 major markets across Canada analyzed, the Kitchener-Waterloo region exhibited a greater decline in home prices compared to others since June, reaching a national average of $760,600.
Regional Breakdown
Cities in southern Ontario, including the Greater Toronto Area, Niagara, Hamilton, Burlington, London, Kitchener, and Waterloo, were scrutinized. Kitchener-Waterloo recorded the highest decline at 8.9% since June, with prices forecasted at $708,600 in November, reflecting a 0.6% increase from the previous year.
Greater Toronto Area and Beyond
Since June, rates in the Greater Toronto Area have fluctuated by 7.7 percent, with the benchmark cost falling to $1,081,300. Reductions of more than 7% have been recorded in other cities since June as well, including London, St. Thomas, Hamilton, and Burlington.
Market Variations
While Guelph remained relatively steady at 6.6%, variations in the Niagara region reached 5%, with prices at $635,400. Despite these declines, certain Ontario markets maintained pre-pandemic demand levels, with options available within previous limits.
Segment-Specific Declines
Breaking down the decline, the Kitchener-Waterloo region recorded the most substantial percentage drop in rates for standard single-family homes at 9.7% since June 2023, reaching $802,900. Hamilton and Burlington also experienced an 8.5% drop in designs since June.
Greater Toronto Area Benchmarks
Benchmark homes in the Greater Toronto Area witnessed a 7.8% decline since June, with prices hovering around $1.29 million before considering external factors like Huawei. While portfolio prices remained relatively stable, cities like St. Thomas, London, and others saw over a 4% decline in rates since June.
Condo Market Dynamics
The Kitchener-Waterloo condo market experienced the most substantial drop since 2022 across Canada, with standard designs down by 5.2%.
Market Resilience
Despite these variations, the median housing price across all property types in the Greater Toronto Area demonstrated resilience, rising from a low of 1,037,542.
