New report sheds light on the cities shifting into buyers' territory – and those where sellers still have the upper hand
National home prices declined 3% year over year in March, with six of Canada’s 13 major housing markets now in negative territory, according to the latest RPS-Wahi House Price Index released Monday by Wahi, a Canadian real estate platform, and Real Property Solutions (RPS), a national appraisal management company.
The national decline marks a steeper drop compared with the 2% annual decreases recorded in January and February, with RPS and Wahi attributing the deeper fall, at least in part, to more widespread regional price reductions.
Halifax joins five markets in decline
Halifax emerged as the sixth major market to post a year-over-year price decline, with values falling 2% in March – the latest city to join Ottawa, which became the fifth major market in negative territory in February.
Halifax now joins a growing list of markets where prices are trending downward, including Hamilton (-8%), Toronto (-7%), Vancouver (-5%), Victoria (-9%), and Ottawa (-3%).
“The Canadian housing market is performing a rebalancing act,” said RPS-Wahi economist Ryan McLaughlin. “Like other previously hot housing markets currently experiencing slowdowns, Halifax appears to be returning to more balanced conditions rather than beginning a pronounced downturn,” he continued.
Prairie markets cool; Quebec outperforms
Markets in the Prairie provinces, once among Canada’s hottest, have seen their price gains moderate significantly. Edmonton and Calgary each recorded modest 1% annual gains in March, while Saskatoon and Regina posted 2% increases.
Montreal and Quebec City continued to widen the gap with other regions, posting annual gains of 9% and 12%, respectively.
Source: RPS
Condos and townhouses lead declines
Price softness has become increasingly entrenched across housing types. Townhouses recorded the steepest annual price decline among all housing types, falling 7% year over year in March, edging ahead of condominiums, which dropped 6%.
Semi-detached properties also saw their annual declines accelerate, falling 4%. Detached homes, while not immune to the trend, posted a comparatively modest 3% annual decline and continued to outperform all other housing types.
The index noted that condo values had previously been depreciating more rapidly than any other housing type before townhouse declines caught up in recent months.
Uncertainty clouds outlook
McLaughlin cautioned that the road ahead remains difficult to forecast.
“Looking ahead, macroeconomic uncertainty and rapidly evolving geopolitical strife make it difficult to confidently predict where the market is heading, but the RPS-Wahi House Price Index will continue to be a leading indicator,” he said.
