Housing market predictions: Canada vs US housing markets

Table of Content

• Average Home Prices in Canada Now More Than 40% Above U.S. Levels: BMO
• Canadian Real Estate Prices Grew Nearly 2x The Next G7 Country
• Sales Volume and Inventory in Edmonton Decline Sharply as the Winter Market Sets In
• Canadian and U.S. Home Prices
• The 5 Most Affordable Housing Markets in Canada and the U.S.
• Housing Market News Alerts

The environmental agenda of the federal government impacted the oil industry at the same time as global price reductions. These factors reduced many high paying jobs and limited safe investment opportunities outside of housing. I’m a 43 year old Canadian with a $1M+ 1600 sq foot home . Don’t really care that my principal residence is highly valued.

Then he went on TV Ontario with host Steve Paikin and said that attracting foreign capital is the key to building more housing supply in Canada. Canada is relatively well-known for having an open-door policy for immigration. Therefore, it is no surprise Canada also has a relatively open-door policy for foreigners looking to buy property.

Average Home Prices in Canada Now More Than 40% Above U.S. Levels: BMO

As of March 2021, home sales in Canada were 75% higher than the average over 2018 and 2019, while it was 13% above in the U.S.¹ Likewise, home prices also spiked. In Canada, the average home sold was 32% more expensive than what it was a year ago, and it was 17% higher stateside . Recent headlines have used superlatives to describe housing market conditions in both countries and the data do back this up.

Kevin Lee, CEO of the Canadian Home Builders Association, said inflation has raised construction and labour costs, while higher interest rates have raised the cost of financing projects. Lee said developers have very little flexibility when it comes to recouping their costs. The number of detached home sales in the city dropped to 142 from 460 in the same period. The buyers CBC spoke to say there are around 100 people in the same situation at the development. They provided a contact list showing approximately 60 households.

Canadian Real Estate Prices Grew Nearly 2x The Next G7 Country

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Another differentiating aspect of the Canadian housing market is that there is less scarring from the 2008 housing crash in Canada compared to the U.S. Average home prices declined by an extraordinary 12% during the downturn in the U.S., but for Canada, the peak decline was only 0.5%. There's no denying that housing has been a great bet for the last 20 years in Canada . This is probably why Canadians have been hit with the fear of missing out, or FOMO, bug a lot harder than Americans.

Sales Volume and Inventory in Edmonton Decline Sharply as the Winter Market Sets In

As of February, the Canadian Real Estate Association reported that the average price of a Canadian home stood at 816,720 Canadian dollars, or $646,809 — over nine times the average household income. A previous version of this story stated that a homebuyer told CBC News he had been pre-approved for a mortgage rate that would have required monthly payments of $5,000. It has been updated to clarify that he said the monthly payments would be between $5,500 and $6,000.

As a result, U.S. property looks even more likely to continue doing well. Let’s take a look at another affordability chart by Numbeo, the largest cost of living database site. As you can see from the chart below, the United States is the second most affordable country in the world.

Canadian and U.S. Home Prices

Canada is roughly 3.9 million square miles large, 0.18 million square miles larger than the United States. However, most Canadians are clustered in a handful of major cities not far from the U.S. border. Most of the jobs are in Montreal, Toronto, and Vancouver. Then there are cities such as Brantford, Ottawa, Kelowna, Quebec City, Calgary, Saskatoon, Abbotsford, Halifax, and Victoria where job growth is considered promising. If the choice is between buying a comparable U.S. property or Canadian property, I would buy the U.S. property all day long. The U.S. has better weather, better job opportunities, and more entrepreneurial opportunities.

Demographics, lower interest rates, a higher percentage of the population living in the country’s largest cities and home ownership rates are all possible contributors to the price gap. However, Porter zeroes in on population growth driving demand for housing and consumer preferences as the biggest factors to consider. This appears to have been more of a driver in Canada.

I sold my rental property in 2017 because I couldn’t stand dealing with five guys as tenants anymore. When they decided to spread out, I used it as an opportunity to simplify life and reinvest the proceeds in more passive investments. The wave of foreign money from Asia is coming for west coast property. The waiver for money from Europe is coming for East Coast property. Compared to the US, wages are lower here and taxes quite high, however once you start having children there are several expenses that are way cheaper here, namely childcare , education and healthcare. Great article, always fun to see comparisons like this between Canada and the US.

Yeah, Canada is running out of land, that is why prices are so high. But if you are retiring, you can move anywhere to geo arbitrage. But I don’t know that many people looking to retire to Canada due to the weather. Richmond known to have high crimes but cheapest home and land compare to Oakland. Global Financial Integrity, a Washington D.C.-based anti-corruption organization believes a significant amount of illicit funds is laundered in Canadian real estate.