Canada ends 2022 with modest decline in national aggregate home price, though prices remain well above pre-pandemic levels
by Laura Forester | January 19, 2023
According to Royal LePage, the aggerate price of a home in Canada is $757,100, which is down 2.8% in Q4 2022 versus the prior year. This is the first year-over-year decline recorded in more than a decade. On a quarterly basis, the price decline was 2.3% and is the third consecutive quarterly decline and the smallest decrease so far. Prices remain above pre-pandemic levels: Canada’s Q4 2022 national aggregate home price has appreciated 13.8% versus Q4 2020, and 17.2% versus Q4 2019.
Housing values are based on the Royal LePage National House Price Composite, produced through the use of its data together with the data and analytics of its sister company, RPS Real Property Solutions.
National House Prices
According to Royal LePage, the aggerate price of a home in Canada is $757,100, which is down 2.8% in Q4 2022 versus the prior year, which is the first year-over-year decline recorded in more than a decade. On a quarterly basis, the price decline was 2.3% and is the third consecutive quarterly decline and the smallest decrease so far. Prices remain above pre-pandemic levels: Canada’s Q4 2022 national aggregate home price has appreciated 13.8% versus Q4 2020, and 17.2% versus Q4 2019.
“It may be headline-grabbing to say that prices are down by double digits, yet well less than 1% of property owners completed their purchases in February or March of last year (at their peak), when the pandemic-driven urgency to buy and serious housing supply shortages came together to create a final spike in prices,” said Phil Soper, president and CEO of Royal LePage. “Over time, Canadian homeowners have benefited greatly from real estate appreciation.”
“While the red-hot market conditions are behind us, there remains a widespread shortage of homes in Canada that cannot be offset by temporarily cooling demand. Many sidelined buyers are waiting patiently for the bottom to be revealed,” continued Soper. “Once interest rates stabilize and consumers adapt to their new normal, many of today’s sidelined buyers will be back – sooner than many analysts are predicting.”