Five major cities in Canada are currently seeing a year-over-year decline in home prices. Although prices remain higher than they were in 2019, the Canadian real estate market is experiencing decreases compared to last year.
According to a new report published by the real estate platform WAHI and Real Property Solutions, a company specializing in property valuation, national home prices fell by 2% in February compared to the same period last year. This decline follows the downward trend recorded in January.
The report identified that among 13 major urban areas analyzed, five key markets are now experiencing an annual decrease in home prices. Ottawa has joined the list alongside Hamilton (down 6%), Toronto (6%), Vancouver (4%), and Victoria (7%).
This makes Ottawa the first major city outside British Columbia and the Greater Toronto and Hamilton Area to experience a year-over-year decline, with prices dropping by 1% in February. The report also noted that price declines in the other four cities have been ongoing for several months.
On the other hand, four other major Canadian cities continue to register notable increases in home prices. For instance, prices rose by 13% in Quebec City, 9% in Montreal, 7% in Winnipeg, and 4% in Regina, indicating stability and growth in the real estate market in these areas.
Ryan McLoughlin, an economist at WAHI, explained that while the decline in home prices may attract attention, it is important to consider that prices are still high compared to several years ago in most major Canadian markets. He added that many markets, especially in Quebec and the Prairie region, continue to experience strong price growth.
