- the source for market opinions


November 17, 2023 | Buyers in Hibernation as Home Prices Fall

Danielle Park

Portfolio Manager and President of Venable Park Investment Counsel ( Ms Park is a financial analyst, attorney, finance author and regular guest on North American media. She is also the author of the best-selling myth-busting book "Juggling Dynamite: An insider's wisdom on money management, markets and wealth that lasts," and a popular daily financial blog:

From 2000 to 2022, Canadian home prices increased 375% (an average of 17% annually, shown in red below), while the average Canadian wage (black line below) rose 3% per yearIn the Greater Toronto and Vancouver Areas, where most of the population lives, median home prices rose 450% and 490%, respectively.  


The mania escalated during the pandemic when prices in popular areas leapt 50% between the end of 2019 and February 2022, when the average sale price nationally reached $816k. In October, the average sale price was $656k, down nearly 20% from the peak. Where I live, north of Toronto, “new price” discounts are evident, and properties are still sitting. Also, see, In Victoria, former Airbnbs are flooding the market–but nobody’s buying.

The trouble is that there is a huge supply of homes where owners and lenders are banking on market values over $1 million, more than 50% higher than October’s average sale price. With buyers in hibernation, many owners/lenders are turning hopes to a stronger spring market (CREA). But with mortgage rates not likely to be significantly lower by then, prices will need to give.


STAY INFORMED! Receive our Weekly Recap of thought provoking articles, podcasts, and radio delivered to your inbox for FREE! Sign up here for the Weekly Recap.

November 17th, 2023

Posted In: Juggling Dynamite

Post a Comment:

Your email address will not be published. Required fields are marked *

All Comments are moderated before appearing on the site


This site uses Akismet to reduce spam. Learn how your comment data is processed.