National home sales and prices have been consistently trending upward for most of this year, with the national average home price hitting $754,700 in May 2023 – the highest since July 2022 according to the Canadian Real Estate Association.
In the midst of rising interest rates, it’s uncertain whether this upward climb will continue for long as previously confident buyers may take a step back. Still, the largest problem plaguing the market right now is a lack of inventory, which could actually keep prices propped up.
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Prospective homebuyers looking for affordable entry points into Canadian markets will be relieved to learn that several local markets still have average home prices below the national average. Zoocasa analyzed average home prices in 23 regional markets across Canada to determine where home prices are the most affordable, and where the most growth is happening. We also curated a list of currently available homes (as of June 21, 2023) in some of the most affordable regions.
16 Out of 23 Regional Markets Have Average Home Prices Below the National Average
As you move away from metropolitan cities like Vancouver or Toronto, the affordability of housing generally improves. This unsurprisingly puts Saint John on top as the most affordable market on our list, with an average home price in May 2023 of $281,100 – $473,600 cheaper than the national average and $906,900 cheaper than the most expensive market, Vancouver. However, in terms of price growth, it lags behind other affordable markets and has shown only 3.8% growth since January 2023.
With an average price of $451,000, Sudbury saw the largest price growth this year at 17.9%, while its northern neighbour North Bay had the second-largest price growth this year at 11.7%. Greater Moncton, London & St. Thomas, and Ottawa all had price growth of over 7% since January 2023 with average prices at $323,700, $619,800, and $645,400 respectively.
Most Expensive Markets Significantly Higher than the National Average
The only markets less than $100,000 above the national average are Kitchener-Waterloo, with an average price of $777,5000 in May 2023, and Guelph & District, with an average price of $843,300 in May 2023, both still out of reach for the average homebuyer. The remaining five regions all have average home prices more than $100,000 above the national average, and in the case of Fraser Valley, Greater Toronto, and Greater Vancouver that amount more than doubles.
Greater Vancouver’s average price of $1,188,000 is more than triple that of Saskatoon, Edmonton and Winnipeg. Greater Toronto isn’t far behind with an average price of $1,164,400 in May 2023. Both regions saw modest price growth since January 2023, at 6.6% and 8.8% respectively. Kitchener-Waterloo had the most price growth however at 8.9% since the beginning of this year.
Staggering Sales Growth for All Regions Driven by Hot Competition
This year has demonstrated that buyers were ready to hop off the sidelines and enter the market, regardless of conditions. This is reflected in the more than 100% sales growth that many regions saw since January 2023. In fact, the only region with less than 100% sales growth since January 2023 is Quebec CMA, which still experienced notable growth of 66%.
The largest sales growth was found in Guelph & District, at a whopping 387.4% and North Bay at 363%, however, it’s worth noting that because both markets are small, North Bay had just 125 sales in May 2023, the rate of increase seems more staggering. Larger markets also benefitted from increased buyer activity, with Greater Vancouver seeing home sales increase by 231.2%, Greater Toronto up by 190.7%, and Calgary at 162.3%.
Sample Listings in Canada’s Most Affordable Regions
1. Niagara Region
- Average Home Price: $662,400
- Price Change Since Jan 2023: 5.7%
- What you could buy: 42 Oliver Lane
- List Price: $649,900
- Property details:
- Townhouse
- 3 beds, 2 baths, 2 parking
2. Ottawa
- Average Home Price: $645,400
- Price Change Since Jan 2023: 7.1%
- What you could buy: 311 Shepperton Street
- List Price: $659,000
- Property details:
- Townhouse
- 3 beds, 3 baths, 2 parking
3. London & St. Thomas
- Average Home Price: $619,800
- Price Change Since Jan 2023: 7.3%
- What you could buy: 4 Fox Hollow Crescent
- List Price: $629,900
- Property details:
- Detached
- 3 beds, 2 baths, 2 parking
4. Windsor-Essex
- Average Home Price: $567,800
- Price Change Since Jan 2023: 4.4%
- What you could buy: 3201 Morris
- List Price: $550,000
- Property details:
- Detached
- 3 beds, 2 baths, 0 parking
5. Calgary
- Average Home Price: $540,700
- Price Change Since Jan 2023: 6.8%
- What you could buy: 540 Brookmere Crescent Sw
- List Price: $539,900
- Property details:
- Detached
- 4 beds, 2 baths, 4 parking
6. Halifax-Dartmouth
- Average Home Price: $529,500
- Price Change Since Jan 2023: 5.4%
- What you could buy: 12 Rosehurst Close
- List Price: $529,900
- Property details:
- Semi-Detached
- 3 beds, 2 baths, 0 parking
7. Sudbury
- Average Home Price: $451,000
- Price Change Since Jan 2023: 17.9%
- What you could buy: 224 Tarneaud Street
- List Price: $439,900
- Property details:
- Detached
- 3 beds, 2 baths, 0 parking
8. Saskatoon
- Average Home Price: $380,100
- Price Change Since Jan 2023: 4.2%
- What you could buy: 907 Kolynchuk Bend
- List Price: $395,030
- Property details:
- Detached
- 3 beds, 3 baths, 0 parking
9. Edmonton
- Average Home Price: $372,100
- Price Change Since Jan 2023: 3.5%
- What you could buy: 9815 76 Av Nw
- List Price: $379,900
- Property details:
- Detached
- 3 beds, 2 baths, 0 parking
10. Greater Moncton
- Average Home Price: $323,700
- Price Change Since Jan 2023: 7.4%
- What you could buy: 74 North
- List Price: $325,000
- Property details:
- Detached
- 3 beds, 1 bath, 0 parking
11. Regina
- Average Home Price: $316,100
- Price Change Since Jan 2023: 2.7%
- What you could buy: 5513 4th Avenue
- List Price: $304,900
- Property details:
- Detached
- 4 beds, 2 baths, 0 parking
12. Saint John
- Average Home Price: $281,100
- Price Change Since Jan 2023: 3.8%
- What you could buy: 276 Duke Street
- List Price: $299,900
- Property details:
- Detached
- 3 beds, 2 baths, 0 parking
If you’re looking to enter one of these markets, it’s important to speak with a local realtor who can give you specific information and guidance about the local real estate market. Give us a call today to discuss your home-buying plans.
