Here's where average home prices have dropped the most in Canada – and what's on the market

While most Canadian real estate markets saw a drop in average home prices in January, not all regions are reporting the same level of decline. CTVNews.ca has compiled a list of homes currently on sale in markets that are seeing some of the largest decreases in average home prices year-over-year.

The average price of a home in Canada fell to $612,204 in January, based on data released by the Canadian Real Estate Association (CREA) on Wednesday. This represents a decrease of 18.3 per cent compared to the same time last year, and is a far cry from the record-high average of $816,720 in February last year.

The number of people buying and selling properties also dropped in January, which saw the fewest home sales for the month since 2009. Compared to the same time last year, home sales in January this year have decreased by 37.1 per cent. These figures are not seasonally adjusted and represent an aggregate of all residential property types.

“The big question on everyone’s minds after last year was what will housing markets do in 2023?” said CREA chair Jill Oudil in a press release published on Wednesday. “We may have to wait another month or two to see what buyers are planning this year since new listings are currently trickling out at near-record low levels.”

Rising interest rates over the last year have led to increases in mortgage rates, which have ultimately resulted in a slower housing market. The Bank of Canada’s most recent interest rate announcement involved a hike of 0.25 per cent on Jan. 25.

While most MLS systems included in the CREA’s monthly report saw a drop in average home prices, not all regions are seeing the same level of decline. Major markets, such as the Greater Toronto and Vancouver areas, saw the average price of a home fall 16.4 and 8.4 per cent year-over-year, respectively.

However, smaller markets situated just outside of these major hubs, such as Fraser Valley in British Columbia and London, Ont., are seeing steep annual declines of 27.4 and 25.3 per cent respectively. According to experts, these regions, which reported some of the largest price increases in Canada during the COVID-19 pandemic, are likely to see the most significant price corrections in 2023.

CTVNews.ca has compiled a list of Canadian real estate markets reporting some of the largest declines in average home prices year-over-year. Scroll down to see homes that are currently on sale in these markets.