Canadian real estate markets are heading into the busy season with negative price growth. Canadian Real Estate Association (CREA) numbers show an annual decline for the price of a benchmark home in February. The decline for the benchmark is the first since 2009, and the first for the index outside of recession.

Canadian Real Estate Prices Drop For The First Time Since 2009

The price of a typical home in Canada made the first annual decline in almost 10 years, last month. The CREA benchmark fell to $615,300 in February, up 0.3% from the month before. Prices are now down 0.13% lower when compared to the same month last year. This is the first annual decline since 2009, and the only one outside of a recession.

Canadian Real Estate Benchmark Change

The 12 month price in change of a typical home across Canada.

Source: CREA, Better Dwelling.

The annual pace of growth (or lack thereof) is trending lower. The 0.13% decline is small, but lower than the month before. This is the sixth consecutive month of declines, with prices dropping 1.45% over just the past 6 months.

Ontario Real Estate Markets See Biggest Price Gains

The largest annual price gains were all observed in Southern Ontario. Ottawa made the largest gains with a typical home hitting $400,800 in February, up 7.41% from the same month last year. Guelph followed with a typical home reaching $527,300, up 6.84% from last year. Niagara came in third at $393,500, up 6.54% from last year. These markets all trail the national price, and are close to their all-time peak.

Canadian Real Estate Benchmark Price

The price of a typical home in Canada’s largest real estate markets.

Source: CREA, Better Dwelling.

Western Canadian Real Estate Leads Prices Lower

Real estate markets leading the way lower were all located in Western Canada. The typical home in Vancouver fell to $1,016,600 in February, down 6.1% from last year – the largest drop in the country. Regina did slightly better with prices falling to $262,800, down 5.13% from last year. Edmonton fell to $315,700, 4.49% from last year.

Canadian Real Estate Price Change – 1 Year

The 1 year percent change in the price of a typical home, in Canada’s largest markets.

Source: CREA, Better Dwelling.

Only 3 Canadian Real Estate Markets Are At Peak Prices

Just three markets are sitting at peak prices – Ottawa, Niagara, and Montreal. Ottawa is the most expensive at $400,800, up 7.41% from last year and at an all-time high. Niagara followed at $393,500, up 6.54% from last year. Montreal is at $353,400, up 6.24% from last year. That’s it. All of Canada’s other large markets have fallen from peak.

Canadian Real Estate Price Change From Peak

The percent change from peak pricing for a typical home in Canada’s largest markets.

Source: CREA, Better Dwelling.

The majority of markets are off of all-time peaks, but Edmonton, Regina, and Barrie made the biggest drops. Edmonton is down the most with prices hitting $315,700 in February, down 15.54% from peak. Regina prices fell to $262,800, down 14.59% from it’s all-time peak. Barrie is looking at the third biggest drop with prices hitting $458,600, down 13.91% from the all-time high.

Toronto and Vancouver didn’t make the largest movements, but they’re still work calling out. Toronto’s typical home price hit $767,800 in February, down 5.81% from peak pricing for the city. Vancouver fell to $1,016,600, and is down 7.97% from the all-time high.

The first national decline in almost a decade comes at an interesting time. Canadians are loaded with the some of the highest debt levels in history. Regulators are taking a stand to ensure that households don’t max out their credit. Politicians are pushing to loosen lending standards, to help push debt levels higher. All while the busiest time for home buying approaches very quickly.

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