Canadian real estate’s ice cold summer continued last month. Canadian Real Estate Association (CREA) data shows the price of a typical home (composite benchmark) fell for a sixth consecutive month in May. Weak sales, rising inventory, and economic jitters helped to push prices to the lowest level in 4 years.
Canadian Real Estate Prices Fall To A 4-Year Low
The seasonally adjusted price of a benchmark (typical) home across Canada.
Source: CREA; Better Dwelling.
Canadian real estate prices continued to slide lower. The seasonally adjusted benchmark home fell 0.2% (-$1,500) to $690,900 in May. A typical home across the country is now the cheapest since May 2021—exactly 4 years ago.
Those looking for prices to firm anytime soon aren’t going to see that in the 12-month trend. The benchmark is 3.2% (-$23,100) lower than last year, with 12-month losses getting larger for four consecutive months.
Canadian Real Estate Prices Now At The Furthest Point Since Peak
According to the board’s benchmark data, home prices have steadily fallen from the record high. The market top was back in February 2022, and since then, the benchmark has fallen 17.5% (-$146,500) as of last month. May marks the largest decline from the all-time high.
The declines are hardly a surprise, and largely just confirmed what experts had anticipated after major markets reported weak demand and rising inventory. With a flood of inventory still set to arrive, a lack of affordability, and a trade war with no end in sight—it’s hard to see how this trend lets up anytime soon.
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