These are the least and most affordable cities to buy homes in Canada

Sep 29 2020, 9:24 am

Over the last five years, the real estate market across Canada has seen significant changes, with some parts of the country proving to be more affordable, and others not.

According to a recent report by Zoocasa, when using data from the Canadian Real Estate Association (CREA) to look at trends in benchmark home prices for apartments and single-family houses in 15 Canadian cities over the last five years, some cities saw substantial increases with others seeing a decrease.

It may be no surprise that some of the most expensive real estate is in BC and Ontario.

Taking first place was Fraser Valley, BC, where the prices increased by a staggering 104% to $437,300.

In Southern Ontario, Niagara Region led price growth in the area, with the benchmark price growing 87% to $354,400. This was followed by Toronto, with a 78% increase for apartments, making the average price now $592,900.

Then Hamilton-Burlington, where the price rose 74% to $471,100, and Guelph where there was a 73% increase in the benchmark apartment price to $379,000.

Top three regions where it’s more expensive to buy an apartment:¬†

1. Fraser Valley

  • Benchmark Apartment Price, August 2020: $437,300
  • 5-Year % Difference: +104%
  • 5-Year $ Difference: +$223,400

2. Niagara Region

  • Benchmark Apartment Price, August 2020: $354,400
  • 5-Year % Difference: +87%
  • 5-Year $ Difference: +$165,100

3. Greater Toronto

  • Benchmark Apartment Price, August 2020: $592,900
  • 5-Year % Difference: +78%
  • 5-Year $ Difference: +$259,800

For single-family homes, Niagara Region experienced the highest growth, with the price almost doubling, with a staggering 95% increase in five years to $490,500.

This was followed by Hamilton-Burligton with 71%, Guelph with 63%, Fraser Valley with 62%, Ottawa with 53%, Toronto with 51%, and Victoria with 50%.

Montreal, Greater Vancouver, and Winnipeg single-family benchmark prices also rose, but at 46%, 28% and 17%, respectively.

Top three regions where it’s more expansive to buy a house:¬†

1. Niagara Region

  • Benchmark Single-Family House Price, August 2020: $490,500
  • 5-Year % Difference: +95%
  • 5-Year $ Difference: +$239,300

2. Hamilton-Burlington

  • Benchmark Single-Family House Price, August 2020: $751,300
  • 5-Year % Difference: +71%
  • 5-Year $ Difference: +$311,300

3. Guelph

  • Benchmark Single-Family House Price, August 2020: $651,600
  • 5-Year % Difference: +63%
  • 5-Year $ Difference: +$251,000

Zoocasa

However, Calgary and Edmonton had more affordable homes.

According to the report, in Calgary ‚ÄĒ Canada‚Äôs third most populous city ‚ÄĒ the benchmark apartment price was $248,500 in August, dropping 14% or $41,900 since 2015.

And the benchmark single-family house in Calgary is now $466,000, which is 6% or $30,800 cheaper than the price five years ago.

Similarly, in Edmonton, the benchmark apartment is 17%, or $37,300, cheaper than it was five years ago at $183,900 and the benchmark single-family house cost $377,300 in August this year, versus $396,800 in August 2015 ‚ÄĒ a drop of 5% or $19,500.

Top three regions where it’s cheaper to purchase an apartment:¬†

1. Regina

  • Benchmark Apartment Price, August 2020: $174,800
  • 5-Year % Difference: -21%
  • 5-Year $ Difference: -$46,900

2. Edmonton

  • Benchmark Apartment Price, August 2020: $183,900
  • 5-Year % Difference: -17%
  • 5-Year $ Difference: -$37,300

3. St. John’s

  • Benchmark Apartment Price, August 2020: $236,200
  • 5-Year % Difference: -16%
  • 5-Year $ Difference: -$43,700

Top three regions where it’s cheaper to buy a single-family house:

1. Calgary

  • Benchmark Single-Family House Price, August 2020: $466,000
  • 5-Year % Difference: -6%
  • 5-Year $ Difference: -$30,800

2. St John’s

  • Benchmark Single-Family House Price, August 2020: $271,600
  • 5-Year % Difference: -6%
  • 5-Year $ Difference: -$17,600

3. Edmonton

  • Benchmark Single-Family House Price, August 2020: $377,300
  • 5-Year % Difference: -5%
  • 5-Year $ Difference: -$19,500

For the areas where there is a surge in demand, the Canada Housing and Mortgage Corporation (CMHC) also emphasize that their forecast home prices are likely to slow down in the coming months due to the pandemic.

With a rise in unemployment and slower in-bound migration weighing on demand, particularly in metropolitan cities like Toronto and Vancouver, there could be a different projection for the real estate market in the coming months.

And more interest in suburban areas, where housing is less expensive and there is greater square footage for your property.

Clarrie FeinsteinClarrie Feinstein

+ Real Estate
+ Urbanized
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT