A few insights:
Across most cities in Canada, real estate prices peaked in Spring 2022, spurred on by a home buying spree during the pandemic. Since then, home prices have tumbled in most major cities in Canada.
The most severe home price declines have been in Hamilton and Toronto, with current home prices roughly 20% lower than the all-time high price.
On the other hand, home prices in Calgary / Regina / Saskatoon remain at or near the all-time high.
As of January 2023, the average home price in Canada has fallen by 15% (current price of $714,700 versus all-time high price of $841,400).
In spite of the recent declines in home prices in many cities across Canada, the housing market still remains unaffordable for most potential new homebuyers.
As of January 2023, a homebuyer who purchases the average home in Canada with a 20% downpayment at current mortgage rates would have a monthly mortgage payment of $3,611 per month ($43,332 per year). Compared to the median pre-tax household income of $89,709 in Canada, this means that the mortgage payment represents 48.3% of income.