Real Estate

Canadian Housing Market Outlook 2024

Canadian Housing Market Outlook 2024

Table of contents


    National Market Report Summary

    • The average selling price of a home in Canada increased by 0.8% year-over-year to $720,500 in February 2024.
    • The average selling price of a single-family home in Canada increased by 1.2% year-over-year to $792,200 in February 2024.
    • The average selling price of a townhouse/multiplex in Canada increased by 0.8% year-over-year to $664,600 in February 2024.
    • The average selling price of a condo in Canada increased by 1.3% year-over-year to $530,700 in February 2024.
    • The average rent in Canada increased by 10.5% year-over-year to $2,193 for February 2024

    Are you a first-time buyer?

    Best Mortgage Rates

    Fixed
    Variable
    in

    0.00%3 Year Fixed

    Get Rates

    0.00%5 Year Fixed

    Get Rates
    Check more rates

    Composite Home Prices

    The average selling price of a home in Canada was $720,500 for the month of February 2024, that’s increased by 1.8% compared to the previous month. On a year-over-year basis, Canadian home prices have increased 0.8% over the last 12 months.

    Single-family Home Prices

    The average selling price of a single-family home in Canada was $792,200 for the month of February 2024, that’s increased by 2.0% compared to the previous month. On a year-over-year basis, single-family home prices in Canada have increased by 1.2% over the last 12 months.

    Townhouse and Multiplex Prices

    The average selling price of a townhouse in Canada was $664,600 for the month of February 2024, that’s increased by 1.4% compared to the previous month. On a year-over-year basis, the price of a townhouse in Canada has increased by 0.8% over the last 12 months.

    Condo Prices

    The average selling price of a condo in Canada was $530,700 for the month of February 2024, that’s increased by 0.8% compared to the previous month. On a year-over-year basis, the price of a condo in Canada has increased 1.3% over the last 12 months.

    We’re curious…

    Are you a first-time buyer?


    Canada Housing Market Summary

    Data from the Canadian Real Estate Association (CREA) indicates that the benchmark price of resale residential homes sold across Canada in February 2024 was $720,500, and it increased by 0.8% compared to a year ago.

    CREA also reported a sales-to-new-listings ratio (SNLR) of 56%, indicating a balanced nationally for February 2024.

    In February 2024, the Canadian property market, as measured by the Aggregate Composite MLS® Home Price Index (HPI), experienced a halt in its 5-month downward trend, with prices remaining stable. This is quite remarkable considering the 1.3% decline observed in the previous month, which is not a common occurrence for the typically resilient HPI. 

    On a month-to-month basis, national home sales saw a modest decrease of 3.1% in February. However, this figure masks a more positive overall picture, as sales activity remains 19.7% higher compared to the same period last year. The number of newly listed properties also saw a slight increase of 1.6% in February, suggesting potential growth in the coming months.

    The national average house price reached $685,809, representing a 3.5% increase from February 2023. At the same time, the sales-to-new listings ratio (SLNR) decreased to 55.6%, indicating a balanced market. Inventory levels saw a slight rise, with the national supply of homes reaching 3.8 months by the end of February. Despite the dip in February, overall home sales activity in the past 3 months has surpassed that of the quieter fall market in 2023.

    Month-over-Month Market Expectations for Canada

    Transactions –  Number of Sales

    The number of sales in Canada was 38,771 during February 2024, that’s decreased by 3.1% compared to the previous month. On a year-over-year basis, sales in Canada have increased by 14.8% over the last 12 months.

    New Listings

    The number of new listings in Canada was 68,839 during February 2024, that’s increased by 1.6% compared to the previous month. On a year-over-year basis, new listings in Canada have increased by 20.1% over the last 12 months.

    Real Estate Market

    The sales to new listings ratio (SNLR) in Canada was 56% during February 2024, indicating a balanced. On a monthly basis, that’s decreased by 4.6% compared to the previous month. Canada’s yearly sales to new listings ratio has decreased by 4.4% over the last 12 months.

    The sales to new listings ratio (SNLR) measures the number of home sales compared to new listings. An SNLR under 40% suggests a buyer’s market in which buyers have the upper hand and more negotiating power. An SNLR between 40% and 60% is a balanced market, while an SNLR of over 60% is considered a seller’s market. 

    Annual Changes Composite Home Prices by Province

    Annual Changes to the National Composite Home Prices

    Red hot rates impacting your housing market experience?

    With nesto, you can get a low rate with a 150-day hold.

    Housing Market Glossary and Definitions

    MLS® Home Price Index (HPI)

    The MLS® Home Price Index (HPI) is a real estate price index compiled by the Canadian Real Estate Association (CREA) that tracks the price of homes in your neighbourhood. It’s a quick way for Canadians to compare home prices in different parts of Canada and between different periods without having to factor in the unique characteristics of a particular property.

    While market prices can vary from one month to the next based on seasonal factors, the Home Price Index (HPI) provides a more consistent view and tracks price trends over an extended period. The Home Price Index (HPI) is updated annually in May to reflect changes in real estate markets.

    MLS® HPI is the most comprehensive and precise way to track a neighbourhood’s home price level and trends. MLS HPI uses over 15 years of data from the MLS® System and advanced statistical models to create a “typical” home based on the characteristics of homes purchased and sold. This benchmark home is tracked across all Canadian neighbourhoods and various types of homes.

    Strata insurance

    Strata insurance is insurance that a strata or condominium uses to cover damages to common areas, assets and liabilities to the strata. It can also include fixtures built or installed as part of the original construction of each unit, even though these may not be common structures. Strata insurance can cover the following:

    • Buildings and structures on the strata’s property, including common areas such as the garage, roof, lobby, pool, etc.,
    • Liabilities for any property damage or bodily harm due to an injury suffered on a strata property,
    • Which also includes fixtures in the standard unit or part of the original make of each unit.

    Strata insurance generally does not cover personal belongings and appliances in a condo unit. Damage caused by individual unit owners (e.g., water damage due to a unit owner’s negligence) is typically covered under personal condo insurance.

    Property Types

    Detached homes, also known as single-family homes, are residential properties that stand alone and are not connected to other buildings. They are legal single residential units on their own parcel of land and have a separate title.

    Semi-detached homes are characterized by their unique architectural design. Two houses are built side by side and share a common wall. Although sharing a building, semi-detached homes have their own parcel of land and separate legal titles.

    Townhouses are residential dwellings typically characterized by narrow, tall structures, often sharing walls with neighbouring units. Although they may share yards or common elements with their neighbours, townhouses will have separate legal titles from any adjoining building. Townhouses can be purchased as freehold or leasehold within a condo or strata and may come with their own land parcel. Townhouses can be part of a low-rise or high-rise building.

    Condo apartments, also known as condominiums, are residential properties that combine elements of apartments and individual homes. It is a unit within a larger building or complex owned by an individual who also shares ownership of common areas and amenities with other residents. Condo apartment owners have legal ownership of their units and can modify them within the guidelines set by the condominium association. Unlike a townhouse, condos do not offer exclusive use of outdoor space unless they come with a balcony or terrace. Condos can be part of a low-rise or high-rise building.

    Plexes or multiplexes are unique residential buildings constructed into 2 to 6 units within a single structure. Traditionally, they have been designed as low-rise residential buildings where any unit is accessible via an external entrance with higher floors connected by staircases. Each unit will have a separate registration and title but may share common elements and co-ownership fees with the other multiplex owners. Plexes are common in Québec and older parts of Toronto.  

    Property Ownership Classes

    A freehold is a type of property ownership where an individual or entity has complete and indefinite ownership rights over a property and its parcel of land. Common freehold property types include detached houses, semi-detached houses, farms, and townhouses not part of condominium corporations.

    A condominium or condo is a distinct type of property class that combines apartment living and individual homeownership elements. In a condominium, individual units are owned by the residents, while the common areas and amenities are shared among all the unit owners. This type of ownership gives you rights to your specific unit and some rights and responsibilities to the common areas, such as the hallways, elevators, garage, pool and rooftop patios.
    A leasehold is a legal arrangement where a person or entity holds the right to use and occupy a property for a specific period, typically through a lease agreement. In some cases, the leaseholder may own the building or unit and rent the land from the landowner (landlord).


    We’re curious…

    Are you a first-time buyer?

    Canadian Rental Market

    In February, the average rent for all types of residential properties in Canada reached $2,193, representing a 10.5% year-on-year surge, the most rapid increase since September 2023. On a monthly basis, rent declined slightly by 0.1%. Compared to February 2022, the average rent in Canada has risen by 21%, amounting to a monthly increase of $384.

    Although purpose-built rental apartments have the lowest average rent at $2,110, they experienced the highest annual growth rate of 14.4%. Studio apartments witnessed the most rapid yearly rent growth in February at 14.8%, followed by 1-bedroom (13.4%), 2-bedroom (11.7%), and 3-bedroom (9.9%) apartments.

    Ontario and British Columbia experienced the slowest growth in rent for purpose-built and condominium apartments, with annual increases of 1.0% and 1.3%, respectively. On the other hand, Alberta took the lead with the most rapid growth in rent, rising by 20.0% annually. Specifically, 1-bedroom rent saw a growth of 20.4%, while 2-bedroom rent increased by 18.8%.

    Despite a significant annual rent increase of 15.8%, Saskatchewan remained the most affordable province. Vancouver and Toronto, on the other hand, witnessed a decline in rent on an annual basis, with decreases of 3.3% and 1.3%, respectively. Among the major cities, Edmonton experienced the highest rent increases, with an annual growth rate of 17.3%.

    In terms of shared accommodations, Vancouver had the highest average rent at $1,406, followed closely by Toronto at $1,280. Interestingly, the number of listings for shared accommodations surged by 72% annually.

    Red hot rates impacting your housing market experience?

    With nesto, you can get a low rate with a 150-day hold.

    Canada Market Rents Summary

    The average rent in Canada was $2,193 for the month of February 2024, which increased by 10.5% on a year-over-year basis.

    The average rent for a bachelor apartment in Canada was $1,597 for the month of February 2024, which increased by 14.7% on a year-over-year basis.

    The average rent for a 1-bedroom apartment in Canada was $1,920 for the month of February 2024, which increased by 12.9% on a year-over-year basis.

    The average rent for a 2-bedroom apartment in Canada was $2,293 for the month of February 2024, which increased by 11.3% on a year-over-year basis.

    The average rent for a 3-bedroom apartment in Canada was $1,920 for the month of February 2024, which increased by 11.3% on a year-over-year basis.

    How Does Renting Compare with Homeownership in Today’s Housing Market?

    Each $100,000 in mortgage balance costs an average of $566.89 per month on nesto’s lowest fixed 5-year rate at and $638.20 per month on nesto’s lowest adjustable 5-year rate at . For each $100,000 in mortgage balance, a 0.25% change in Canada’s policy rate impacts the monthly payment by $15. Rates used for calculation are those offered on insured purchases with less than a 20% downpayment on a 25-year amortization. Canada’s policy rate is , and nesto’s prime rate is .

    Rental Price Changes by City

    Rental Price Changes by Province

    Rental Price Growth by Housing Type

    We’re curious…

    Are you a first-time buyer?

    Frequently Asked Questions

    Will 2024 be a good time to buy a house?

    Despite the uncertainty in the housing market, 2024 could be an excellent time to buy a house. Interest rates and housing prices are likely to reduce while wages rise – a combination that means more buying power.

    Is Canada in a housing bubble, and will it burst?

    Canadian real estate prices have risen spectacularly since 2000, and with the current pandemic and inflationary pressures, there is speculation that Canada may be bottoming out of a housing bubble. However, experts are mixed on whether or not this bubble will burst; some think prices may take a dip but stay relatively stable, while others expect prices to fall further.

    Should I wait to get a mortgage in 2024?

    Whether or not you wait to get a mortgage in 2024 depends mainly on your financial circumstances. Consider the current market conditions and forecasts and factor them into your financial and long-term plans. It’s also important to remember that waiting may mean missing out on specific opportunities – especially once mortgage rates start reducing. 

    How nesto works

    At nesto, all of our commission-free mortgage experts hold concurrent professional designations from one or more provinces. Our clients will receive the best advice and care when they speak with specialists that exceed the industry status quo. 

    Unlike the industry norm, our agents are not commissioned but salaried employees. This means you’ll get free, unbiased advice on the most suitable mortgage solution for your unique needs. Our advisors are measured on the satisfaction and quality of advice they provide to their clients. 

    nesto is working hard to change how the mortgage industry functions. We start with honest and transparent advice, followed by our best rates upfront. We can offer you these low rates using the fintech industry’s best-in-class and safest technology to provide a 100% digital online experience and process to reduce overhead costs.

    By working remotely across Canada, all our mortgage experts and staff spend less time commuting to work and more time with their friends and family. This makes for more dedicated employees and contributes to our success with happy and satisfied clients.

    nesto is on a mission to offer a positive, empowering and transparent property financing experience, simplified from start to finish.

    Reach out to our licensed and knowledgeable mortgage experts to find your best mortgage rate in Canada.

    EXPLANATIONS

    Rates

    Values

    Rents

    Criteria

    Experts

    Titles

    Interest Rates

    Qualified using nesto’s fixed 5-year insured and uninsured rates as advertised on our website. For today, Friday, April 12, 2024, our example calculations are qualified on our lowest rates, which may or may not apply to your unique financing situation or long-term goals. Insured fixed-rate mortgages will be qualified at , which is exactly 2% in addition to our fixed insured rate currently at . Uninsured fixed-rate mortgages will be qualified at , which is exactly 2% in addition to our fixed uninsured rate currently at . Insured variable rate mortgages will be qualified at , which is exactly 2% in addition to our variable insured rate currently at . Uninsured variable rate mortgages will be qualified at , which is exactly 2% in addition to our variable uninsured rate currently at .

    We appreciate your patience and understanding and encourage you to email us at website@nesto.ca with information that needs correction alongside your sources.

    Property Values

    Home values collected from CREA or QPAREB are those presented as the composite benchmark or average prices for each city/province/region unless specified. They may be interchangeably called average home prices, though an average price may not be available for many regions outside Quebec.

    Rents

    Our monthly or year-over-year rental averages are sourced from Urbanation’s monthly Rentals.ca National Rental Report.

    Mortgage Qualifying Criteria

    Insured qualifying criteria are limited to a 39% gross debt service (GDS) ratio and up to 25 years of amortization. For insured mortgage transaction calculations, we have used a 20% downpayment, unless otherwise indicated, in our examples and excluded any mortgage default insurance (CMHC) premium. Uninsured qualifying criteria are limited to a 35% gross debt service (GDS) ratio and up to 30 years of amortization. We have used a 20% downpayment for uninsured mortgage transaction calculations in our examples. Unless otherwise indicated, a $100 monthly heating cost is attributed to the total monthly stress-tested payment. Municipal tax rates are the most recently shown on the applicable municipality’s website (1% used as default when unavailable or for a region with an unspecified mill rate). Mortgage default insurance is not permitted on purchases that have valuations of $1 million or more, amortizations exceeding 25 years, or on refinance transactions.

    nesto Mortgage Experts

    Titles such as mortgage broker, mortgage agent, submortgage broker, mortgage salesperson, or principal broker are provincially regulated licensing terms with educational requirements specific to each province. Albeit, commonly, they may all be referred to as mortgage brokers. In Ontario, where mortgage agent is used as a designation, mortgage brokers or principal brokers have additional responsibility for compliance and training mortgage agents.

    Licensed mortgage professionals often use the industry norm of “mortgage broker,” “broker,” or “advisor” to refer to themselves. However, disclosure requirements for licensed mortgage professionals’ titles vary across each province in Canada. These disclosures require mortgage brokers to adhere to specific rules when using titles to represent their qualifications and expertise. The provinces have regulations and guidelines that govern the use of titles by mortgage brokers. These regulations aim to ensure transparency and protect consumers in the mortgage industry.

    Regulatory Titles

    In Ontario (FSRA), Mortgage Brokers and Agents both serve as the middle person between borrowers and lenders, helping clients find the most suitable mortgage options for their financing situation. A Mortgage Agent works under the supervision of a Mortgage Broker and assists in the mortgage application process. A Mortgage Broker may also be responsible for compliance requirements for their brokerage or a team.

    The provinces of Quebec (AMF) and Newfoundland (Digital & Government Service NL) both exclusively utilize the designation of Mortgage Broker as a licensing designation.

    British Columbia (BCFSA) has two distinct roles within the mortgage industry: the Submortgage Broker and the Mortgage Broker. These positions have specific responsibilities and functions that contribute to the overall process of securing mortgages for clients. The Submortgage Broker works under the supervision of a licensed Mortgage Broker and assists in various tasks, such as gathering client information, completing paperwork, and liaising with lenders. The Mortgage Broker oversees the entire mortgage application process, including assessing client needs, finding suitable mortgage options, negotiating terms, and ensuring compliance with regulations.

    In Alberta (RECA) and New Brunswick (FCNB), the distinction between a Mortgage Associate and a Mortgage Broker lies in their roles and responsibilities within the mortgage industry. A Mortgage Associate typically works under the supervision of a Mortgage Broker and assists in the mortgage application process gathering necessary documentation, and providing support to clients. A Mortgage Broker is licensed to independently negotiate and arrange mortgage loans on behalf of clients, offering a more comprehensive range of mortgage options and expertise in the field.

    In Saskatchewan (FCAA) and Nova Scotia (Government of Nova Scotia, Business Licensing), there are distinct roles for both Associate Mortgage Brokers and Mortgage Brokers. The critical difference lies in their level of experience and licensing requirements. Associate Mortgage Brokers work under the supervision of a licensed Mortgage Broker and are in the early stages of their career. They may assist with gathering client information and preparing mortgage applications. Mortgage Brokers have obtained the necessary qualifications and licences to operate independently and provide mortgage services directly to clients. They have the authority to negotiate mortgage terms, advise clients, and facilitate the mortgage process from start to finish.

    In Manitoba (MSC), a Salesperson is primarily responsible for promoting and selling products or services, while an Authorised Official holds the authority to make legally binding decisions on behalf of the organization. These roles have different levels of authority and expertise, with the Salesperson focusing on sales and the Authorised Official having broader decision-making powers and acting as the liaison between the brokerage and the regulator. 

    For a complete list of licensing terms in Canada, please see the Mortgage Broker Regulators’ Council of Canada (MBRCC) published list.


    Ready to get started?

    In just a few clicks, you can see our current rates. Then apply for your mortgage online in minutes!

    in this series Mortgage Forecasts and Trends

    Best Mortgage Rates

    Fixed
    Variable
    in

    0.00%3 Year Fixed

    Get Rates

    0.00%5 Year Fixed

    Get Rates
    Check more rates