Canadian Cities Sporting Affordable Real Estate Amid Rising Prices

Saturday, July 25, 2020   /   by Sergey Korostensky

Canadian Cities Sporting Affordable Real Estate Amid Rising Prices

While the COVID-19 pandemic has changed many aspects of how we go about our day-to-day lives, there is at least one thing that it hasn’t seemed to change – rising Canadian house prices. Even so, there still are some major cities in Canada that boast affordable real estate options.

Despite demand decreasing earlier this year, home prices across the country continued to increase. The pandemic did seem to have a direct impact on Canadian home sales, however. Recent data released by the Canadian Real Estate Association (CREA) shows that home sales dropped earlier in the year, but then rebounded significantly by 63% in June.

Not surprisingly, the highest increases were recorded in the Toronto real estate market, in Vancouver and in Montreal. According to CREA, Canada’s largest markets saw the following month-over-month jumps in home sales this June:

  • 83.8% in the GTA

  • 75.1% in Montreal

  • 60.3% in Greater Vancouver

  • 99.7% in the Fraser Valley

  • 54.9% in Calgary

  • 59% in Edmonton

  • 22.5% in Winnipeg

  • 34.8% in Hamilton-Burlington

  • 67.9% in London and St. Thomas

  • 55.6% in Ottawa

  • 43.6% in Quebec City.

Newly listed homes also surged across the country, by 49.5% in June compared to May.

And things don’t look like they’ll be slowing down, at least for now. Shaun Cathcart, CREA’s Senior Economist, noted in a news release:

“The market has recovered much faster than many would have thought, but what happens later this year remains a big question mark. That said, daily tracking suggests that July, at least, will be even stronger.”

No Slow-Down in Price Increases

The country’s MLS housing price index for June increased half a percentage point compared to May and even grew by 5.4% relative to a year ago.

In general, prices picked up east of Manitoba (except in Toronto) and in BC (except in Vancouver). Calgary, however, saw declining home prices, while other cities in the Prairie Region were either flat or experienced upticks.

The average price for a house in Canada was $538,831 in June. While that might not seem too bad in comparison to values in major markets like Vancouver or Toronto, which can see homes cost an average of $1,025,300 or $863,700, respectively, it’s still can be considered a significant amount for many.

Despite the continued rise in home prices, the good news is that there are still some Canadian cities where you can find homes that cost less than $300,000.

Major Cities with Affordable Real Estate

There are some seriously affordable properties in larger cities on the East Coast. In Saint John, NB, for instance, you can find a home for about $200,961 on average. Moncton, the province’s most populous city, also sports inexpensive options, at about $207,400.

In St. John’s, NL, there are not only low-priced homes for sale at around $146,600, but many affordable rentals as well. What’s more, real estate in Quebec City and the area around it goes for $254,700 on average.

Somewhat surprisingly, Ontario does have some more affordable options in the housing department, but you’re better off looking in the province’s northern region. A home in Thunder Bay, for example, will cost about $267,537.

There are also many accessible options further west, in Winnipeg ($281,100 on average), Saskatoon ($291,700 on average) and Regina ($265,000 on average).

While home prices continue to climb across the country, there are areas where finding a less expensive home is an easier task. Major cities in Eastern Canada, for instance, may be good choices when it comes to properties priced under $300,000 – it really just depends on where you’d like to live!