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Canadian cities where affordability improved
Where in Canada is owning a home becoming more affordable?
Hamilton: Bearing the correction brunt
In its latest data report, CREA pointed out that while sales fell in two-thirds of all markets, Ontario’s Greater Golden Horseshoe was hit especially hard. That’s quite apparent in Hamilton, where transactions dropped 35% year over year in February, according to the Realtors’ Association of Hamilton-Burlington. That resulted in the city’s average home price decreasing by $6,900, to $812,600; combined with lower mortgage rates, that cooled the required income by $3,450. The average monthly mortgage payment in Hamilton also dropped by $100 compared to January, to $4,194.
Toronto: A spring marked by slowing sales
Tariff fears have also taken a bite out of demand within Ontario’s priciest housing market Toronto. Transactions plunged over 27% in Toronto in February, according to the Toronto Regional Real Estate Board (TRREB). While home prices held firm—the city’s average ticked up by $3,800 month over month to $1,073,900 – mortgage rates had fallen by a large enough degree to move the affordability dial; the required income dropped by $2,090 in Toronto, along with the average monthly mortgage payment; it fell $64 to $5,543.
Vancouver: Below the seasonal average
Early spring home sales have also dropped in Vancouver, down 11.7% year over year, and sitting a whopping 28.9% below the 10-year seasonal average, according to the Greater Vancouver Realtors. While transactions have corrected to a lesser degree than what we’re seeing in Ontario, tariff concerns have also shaken west-coast buyers, especially as Vancouver real estate remains the most expensive in Canada. Home prices still rose by an average of $10,700 in February, to $1,174,400. Again, lower mortgage rates led to the average monthly payment dipping slightly, by $36, to $6,117, and the required income dropping by $1,000.
Canadian cities where affordability worsened
Just five of 13 cities saw affordability worsen in February. These were all markets in Canada where buyers are less constrained by high home prices—all with an average below $600,000 —and with a trend of increasing sales and shrinking supply.
Winnipeg: Into sellers’ market territory
Unlike Canada’s largest cities, the Winnipeg housing market heated up in February. According to the Winnipeg data compiled by CREA, home sales increased 13.4% year over year, while listings declined by 6.6%. That combination pushed up prices. The city’s average rose $10,500 month over month to $373,700. As a result, the required income needed to qualify for a mortgage in Winnipeg increased by $1,070. The average monthly mortgage payment also jumped by $26, to $1,929.
Montreal: Reaching pre-pandemic conditions
Montreal continues to experience robust real estate demand; according to the Quebec Professional Association of Real Estate Brokers (QPAREB), February sales were “comparable to the two strong years preceding the pandemic,” with a 7% year-over-year increase, announced the organization. Overall, it remains a strong sellers market, with bidding wars for single-family homes up 15%. That resulted in a $12,400 increase in the averaged Montreal home price, to $562,300, and led to the required income rising by $950.
Edmonton: Sales continue to rise
The Greater Edmonton Area (GEA) housing market kicked off the year with robust home sales, and that trend continued into February, with the Realtor’s Association of Edmonton (RAE) reporting a 14.3% increase in transactions, also outstripping new listings.
