In recent years, Canada has seen a boom in people looking to live and settle in the country. Between 2020 and 2021, over 220,000 people moved to Canada, which goes to show just how popular the country is.
With a unique balance of breathtaking scenery and busy, vibrant cities, as well as one of the world’s best healthcare systems, Canada has a lot going for it. The country has one of the freest economies in the world, according to The Heritage Foundation with a global rank of 15, while also being ranked the 15th happiest nation in the 2022 World Happiness Report, so it’s no wonder that so many people want to build a new life in Canada.
As real estate in Canada becomes increasingly desirable, where in the country are house prices at their highest? And where are they rising the fastest? To help answer these questions, we here at Save Max have put together a 2022 overview of the Canadian housing market, comparing house prices at both the regional and city level.
The Canadian housing market at a glance
Before diving into comparisons between different areas, it’s worth considering how the overall property market in the country is faring. Here we can see snapshots of various factors within the property market each year since 2020, showing how it has changed over time.
The average sold price of a property in Canada reached record levels in 2022, sitting at 796,068 in March of this year. This is a rise of just under $80,000, which is a considerable increase, though is dwarfed by the soaring prices seen in 2021 when prices increased by approximately $175,000 in the previous year. This huge increase is likely due to pent-up demand that resulted from pandemic restrictions and nervousness in 2020.
Despite average property prices continuing to rise in 2022, the overall number of transactions appears to have dropped compared to 2021 levels. This is also a likely result of pent-up demand booming in 2021, with much of that demand dissipating since. However, the number of transactions in 2022 is still approximately 25% higher than in 2020, indicating that there are currently plenty of people looking to purchase a home in Canada.
The regions with the highest average house price
Average house prices vary depending on where you live, which is true anywhere in the world. When looking at house prices in Canada, we wanted to compare regional differences, as well as variations from city to city, so that you can see how prices differ for all parts of the country.
British Columbia Average Sold Price: $1,089,600 The region with the highest average sold price is British Columbia, where the average property sold for an incredible $1,089,600! Home to the bustling and ever-popular city of Vancouver, as well as all of Canada’s Pacific coast, British Columbia is a highly desirable region of the country with prices to match.
Ontario Average Sold Price: $1,052,920 With property prices almost as high as British Columbia, Ontario takes second place with an average sale price of $1,052,920. Ontario is home to several of Canada’s largest and most popular cities, including Ottawa, Toronto, London, and Mississauga, along with having access to both Hudson to the north, and the Great Lakes to the south. With so much crammed into one region, it’s no wonder that properties here can fetch such a high price.
Yukon Average Sold Price: $538,228 In third place, with a substantially lower average property price than our top two regions, is the Yukon. Here the average sale price of a property is just over half a million dollars at $538,228. The Yukon encompasses Canada’s far northwest, bordering Alaska to the west, British Columbia to the south, and the Northwest Territories to the east. This remote and sparsely populated region boasts vast mountain ranges, towering glaciers, and seemingly endless tracts of unspoiled wilderness.
The regions where house prices are increasing the most
It’s not just current house prices that are worth considering, but also how sharply they’re rising. Property values across much of Canada have experienced a boost in recent years, much to the delight of homeowners and the horror of first-time buyers. In this section, we can see which regions have seen the sharpest increase in house prices from March 2021 to March 2022.
Nova Scotia Average Price Increase: 37.4% Nova Scotia is the region where property prices have increased the most over the last year, with the average sale price reaching $390,200 in March 2022 compared to $284,000 just 12 months earlier. This represents a huge increase of 37.4%, making it the country’s regional property hotspot.
New Brunswick Average Price Increase: 33.6% In second place, with an annual average price increase of 33.6%, is New Brunswick. This southeastern tip of the Canadian mainland is bordered by Nova Scotia, Quebec, and Maine to the south, and saw average property prices rise from $225,300 to $300,900 over the last year.
Prince Edward Island Average Price Increase: 26.2% Taking third place is yet another small region located in southeastern Canada, Prince Edward Island, suggesting that this corner of the country is becoming increasingly popular among homebuyers regardless of which specific region they’re looking at. Average property prices on the island rose from $260,200 to $328,500 between March 2021 and March 2022, which is an increase of 26.2%.
The cities with the highest average house price
We’ve also taken a look at the average house prices in some of the biggest and most popular cities across Canada to see which urban area is the most expensive to buy in. Here’s what we found.
*Comparative price data was not available for Vancouver
Toronto Average Sold Price: $1,299,894 Toronto is the most expensive city in the country when it comes to buying a house, with average sale prices of $1,299,894. This multicultural and metropolitan city is one of Canada’s cultural centers and hosts many cultural events including the famous Toronto International Film Festival.
Hamilton Average Sold Price: $1,105,797 In second place is Hamilton, another Ontario city just south of Toronto, where the average property sale price is $1,105,797. Situated on the western tip of Lake Ontario, Hamilton is a short drive to Lakes Erie and Huron, as well as the magnificent Niagara Falls.
London Average Sold Price: $823,954 Completing the top three is London, another Ontario city located in the south of the region. The average house price here sits at $823,954 as of March 2022, making southern Ontario one of the most expensive parts of the country to purchase a property.
The cities where house prices are increasing the most
Again, we have also looked at the rate at which property prices are rising for the cities in our study, comparing prices in March 2022 with those a year earlier in March 2021.
*Comparative price data was not available for Vancouver
London Average Price Increase: 29.80% The city with the fast-growing property values is London, Ontario, which has seen a 29.90% increase in sale prices from $634,799 in March 2021 to $823,954 in March 2022.
Hamilton Average Price Increase: 26.41% Nearby Hamilton runs a close second with an average price increase of 26.41%, with prices in March 2022 sitting at $1,105,797 compared to $874,766 a year earlier.
Toronto Average Price Increase: 18.43% In third place is Toronto, meaning that the top three cities for property price increases are the same and are also the most expensive. Toronto saw a price increase of 18.43% in the year to March 2022, rising from $1,097,565 to $1,299,894.
We wanted to find out which parts of Canada are the most expensive to buy a property, as well as which have seen the biggest increase in property prices over the last year. To do this, we looked at data from WOWA’s Canadian Housing Market Report, recording the average sold price of properties in both cities and regions for March 2021 and March 2022.
We then ranked the regions and cities by their March 2022 figures to reveal the most expensive parts of Canada to purchase a property. Additionally, we calculated the percent increase in average price from March 2021 to March 2022 for each region and city, allowing us to reveal the parts of the country where prices are rising the fastest. We also used data from The Heritage Foundation and the World Happiness Report to give context to our research by discussing why Canada is becoming such an attractive prospect to expats from all over the world.
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