Ontario Leads Canada’s Real Estate Decline Amid Market Slowdown

Canadian real estate prices continued to slide in December, despite lower interest rates and significant stimulus measures. Data from the Canadian Real Estate Association (CREA) reveals that the composite benchmark price for homes fell 0.2% to $705,600 last month. Prices remain 17.2% below the peak recorded in March 2022, with Ontario experiencing the most significant downturn.

Most Provinces See Prices Drop

The downward trend affected most provinces, with only three—Nova Scotia, New Brunswick, and Newfoundland—showing marginal price increases. Nova Scotia and New Brunswick recorded a 0.7% rise, while Newfoundland saw a minimal 0.1% uptick.

On the other hand, Prince Edward Island recorded the largest decline, with home prices dropping 1.0% to $370,300. Alberta saw a 0.3% decrease, while Ontario’s benchmark price fell by 0.2% to $859,600.

Ontario’s Market Continues to Correct

Ontario has seen the sharpest price correction nationwide. Home values in the province are now 20.6% below their peak, marking a $220,800 decline. British Columbia follows, with prices down 10.9% from their highest point, bringing the benchmark to $955,500.

Despite hopes that lower interest rates would revive sales activity, the market remains sluggish. With bond yields rising, expectations for a swift recovery remain uncertain.

Source: Better Dwelling