Canadian real estate sellers who thought the market was stabilizing may soon realize they’re just in the eye of the storm. Canadian Real Estate Association (CREA) data shows the composite benchmark HPI fell in June. The recent declines have been getting larger in recent months, as the price of a typical home in Canada fell to a 4-year low.
Canadian Real Estate Prices Fell To A 4-Year Low
Canadian real estate prices: CREA composite benchmark HPI.
Source: CREA; Better Dwelling.
Canadian real estate prices are heading even lower. The price of a composite benchmark (typical) home fell 0.2% (-$1,600) to $698,600 in June. It represents a decline of 3.6% (-$25,600) when compared to the same time last year. The cost of a typical home across Canada has now rolled back almost 4-years, hitting the lowest level since April 2021.
Canadian Real Estate Price Drops Are Getting Larger
Canadian real estate losses are accelerating once again. Not only was June’s monthly drop bigger than May, the 12-month change has seen losses accelerate for 7 consecutive months and are now falling at the fastest rate since September 2024. There was some uncertainty over where prices would go in this environment, with indicators somewhat stagnant in recent months. Heading lower may be the direction the market has just embraced.
Canadian Home Price Down 18% From Peak, Still Up 28% From 2019
The typical home price has come down significantly, but they do have room to come down further. Since hitting a record high back in February 2022, prices have dropped 17.8% (-$148,800). A significant drop, but they’re still up 26.7% (+$145,000) since the end of 2019, a considerable jump over the period.
It’s also worth noting that last month’s benchmark is lower than the one initially reported in December 2019. Behind the difference in reporting is a methodology shift, which includes giving more weight to condo apartments. In dollar-terms, the house that was slightly expensive back in 2019, was likely larger and in a better location.
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