If you’re looking for value, Toronto is one of the worst places to buy real estate in Canada.
MoneySense’s Where to buy Real Estate in Canada 2022 report has placed Toronto 43rd out of 45 cities in terms of value and buying conditions.
Created in partnership with Zoocasa, the rankings are based on average home prices and recent real estate price growth. Each city received a value score out of five.
With a 2021 benchmark price of $1,023,029—$295,146 above the national average—and a three-year growth rate of 34%, Toronto earned a value score of just 0.7 out of five.
Only Oakville-Milton and Vancouver, British Columbia, were deemed worse places to buy real estate.
Moncton, New Brunswick, was deemed the most valuable place to buy real estate in Canada, but four Ontario towns rounded out the top five. In fact, seven of the top 10 most valuable locales were in Ontario.
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The report found that for two consecutive years, Canada’s largest real estate markets have also been the most financially challenging for buyers.
The pandemic caused many Canadians to reconsider where and how they want to live; city-dwellers across the country fled to suburbia and small towns, purchasing property at a staggering rate and driving up real estate prices.
The trend is continuing to shape Canada’s real estate market in 2022, MoneySense noted.
Based on a two-year post-pandemic analysis of home prices in Canada, the highest growth rates are no longer found in big cities. Rather, it’s the surrounding regions, like Hamilton and Kitchener-Waterloo, where the greatest value and growth potential can be found.
“The past two years have driven new trends in home-buying psychology, and as the pandemic recedes, we’re moving into a transition period and seeing a more balanced market,” said Lauren Haw, CEO and broker of record at Zoocasa.
“Some buyers are returning to city centres as they’re called back to the office, while others are still looking coast-to-coast for the most affordable markets to buy in.”