Canadian housing prices per square foot have remained similar this year with some exceptions, according to Century 21 Canada’s Eighth Annual Price per Square Foot Survey.Century 21 Canada found prices in British Columbia, Ontario, and Atlantic Canada remained steady this year, with increases in various smaller markets and suburbs and declines in downtown condo prices. It said Alberta avoided the trend with large price increases in markets such as Calgary and Edmonton, but prices per square foot were less than those in British Columbia, Ontario, and Quebec. “A number of our brokers are experiencing a slower market when compared to the conditions of just two years ago,” said Century 21 Canada Executive Vice President Todd Shyiak in a press release.“While across the Prairies and Atlantic provinces the market is quite active and balanced, increasing inventory and hesitant buyers in the GTA (Greater Toronto Area) and the Lower Mainland (Vancouver and area) are resulting in a ‘wait and see’ market.”With more interest rate cuts coming soon, Shyiak said buyers might be extending their wait and see approach until the fall.Century 21 Canada said major city condo markets outside of Alberta saw modest dips in price per square foot and those in Alberta rose — more than 17% in Calgary and almost 10% in Edmonton. However, it said condo prices in High River topped the increases at more than 22%, but they remained affordable at $285 per square foot. That compared to $421 in Calgary (17.6%), $1,113 in downtown Vancouver (-1.7%), $706 in downtown Toronto (-4.5%), and $672 in downtown Montreal (-11.9%). Vancouver has the highest prices in Canada, and the Prairies and Atlantic Canada are among the lowest. While there have been declines in the last few years, it said pricing has not fallen below 2021 levels in any major markets. It noted 2021 saw significant price surges and set a new benchmark in various Canadian cities. Sales volumes across Canada have declined from 2021 to 2022, especially in larger cities.Shyiak said inventory and interest rates will likely be major factors in prices going forward, as sellers could hold off on putting their homes for sale because of hesitant buyers unsure about interest rate changes. He concluded by saying people “don’t know what the next six months holds for our housing prices, but it’s important not to get too focused on any single year and look at each data point within the larger context of ever-evolving trends.”“That’s why this survey becomes more valuable year over year, because it allows us to see the big picture of Canadian housing,” he said. Kitchener, ON, was the Canadian city with the steepest decline in single-family home prices in the last year, but other Ontario cities were close behind, according to a February report conducted by Point2Homes. READ MORE: Report says Kitchener worst Canadian city for housing price drop “We have more supply and less demand,” said CIBC World Markets Deputy Chief Economist Benjamin Tal. Point2Homes said the percentage change in Kitchener between 2022 and 2023 was -4.9%. Because of this drop, it said a single-family home in Kitchener went from $806,550 in 2022 to $766,700 in 2023. Century 21 Canada conducted the survey by comparing the price per square foot of properties sold in almost 50 communities between January 1 and June 30 this year to the same period of previous years. It has data going back to 2018 for metro centres and smaller communities in many cases.
