According to the RPS-Wahi index published on Monday, national real estate prices fell 3% year over year — the decline accelerated compared with previous months.
Canada’s real estate market continues to cool. In March, national home prices fell 3% year over year — a sharper decline than in January and February, when a 2% drop was recorded. Analysts attribute the deeper downturn to the widening geography of price declines: six of the country’s thirteen major markets are now showing negative momentum.
Halifax joined the club of falling markets
The newest entrant on this list is Halifax — prices there fell 2% year over year. Back in February, Ottawa became the fifth market with negative momentum. Now Halifax has joined it, adding to the list of cities where housing is getting cheaper: Hamilton (-8%), Toronto (-7%), Vancouver (-5%), Victoria (-9%) and Ottawa (-3%).
“Canada’s housing market is going through a rebalancing process,” commented RPS-Wahi economist Ryan McLaughlin. In his view, Halifax, like other once-overheated markets, is returning to more balanced conditions rather than entering a phase of pronounced decline.
The Prairies are cooling, Quebec is outpacing everyone
Markets in the Prairie provinces, which until recently were among the hottest in the country, have slowed significantly. Edmonton and Calgary posted modest 1% growth year over year, while Saskatoon and Regina recorded 2% each.
Against this backdrop, Quebec stands out sharply. Montreal posted a 9% year-over-year increase in prices, and Quebec City as much as 12%. The gap between Quebec markets and the rest of the country continues to widen.
Townhouses and condos are falling the most
Price weakness has affected all housing types, though to varying degrees. Townhouses fell the most — down 7% year over year, slightly ahead of condominiums, which slipped 6%. Until recently, condos had led the declines — townhouses only caught up in recent months. Semi-detached homes lost 4%, while detached homes fell 3% — the smallest drop among all categories.
Uncertainty prevents forecasts
The market outlook remains murky. “Macroeconomic uncertainty and a rapidly changing geopolitical environment make it impossible to confidently predict where the market is headed,” McLaughlin acknowledged, adding that the RPS-Wahi index will continue to serve as a leading indicator of conditions.
