Where Is the Best Value in Canadian Real Estate?

The current conditions in the Canadian real estate market could present a terrific buying opportunity for many Canadians who were forced to sit on the sidelines during the unprecedented boom during the last couple of years.

While interest rates are sending fixed- and variable-rate mortgages higher, residential property values have been declining recently. A chorus of industry observers, economists  and housing analysts do not anticipate prices to return to the levels before the coronavirus pandemic, but valuations could create a more affordable environment.

Of course, the chief question for new entrants into the marketplace may be: Where is the best value in Canadian real estate today? This might depend on a whole host of factors, from the home’s size to the city’s or town’s amenities. If your household is keen on acquiring a detached house, townhome or condominium, now might be the time to begin your journey to home ownership.

Let’s take a look at some of the places with the best value in today’s housing market.

Where Is the Best Value in Canadian Real Estate?

Here is a list of cities offering the best value for your dollar under present conditions:

#1 Saskatoon, Saskatchewan

Market conditions are tight in the Saskatoon real estate market. On the one hand, sales activity has slumped 11 per cent year-to-date. On the other, inventory levels are still relatively low, which could support the housing industry this year. Still, prices are way below the national average, with the benchmark price at $383,000, according to the Saskatchewan Realtors Association (SRA).

This is why Saskatoon has been rated one of the most affordable housing markets.

#2 St. John’s, Newfoundland and Labrador

Atlantic Canada real estate has been impressive since the beginning of the pandemic. Considering everything that has transpired this year, the east coast remains strong. But the province of Newfoundland and Labrador is still offering tremendous value to prospective homeowners.

According to the Newfoundland and Labrador Association of REALTORS®, the overall MLS® HPI composite benchmark price for homes sold in the St. John’s real estate market in August was $322,500, up 8.4 per cent year-over-year.

Like Saskatoon, St. John’s has also been named one of the most affordable Canadian real estate markets.

#3 Saint John, New Brunswick

The number of residential properties sold in August collapsed by nearly 20 per cent year-over-year, totalling just 227 units, numbers from the Saint John Real Estate Board (SJREB) confirmed. In the first eight months of 2022, housing transactions plunged more than 17 per cent compared to the same time a year ago, with fewer than 1,800 units.

But here is the number on everyone’s mind: $278,300. This is the overall MLS® HPI composite benchmark price, which is up at an annualized pace of 17.4 per cent. The benchmark for single-family homes is just under $280,000, while the benchmark apartment price is about $214,000.

#4 Regina, Saskatchewan

Interest in the Regina real estate market waned in July, rising at a tepid annualized pace of one per cent, SRA data revealed. At the same time, home prices climbed nearly four per cent year-over-year to $330,600. This is half of what Canadians would pay for the typical home in the national real estate market.

#5 Moncton, New Brunswick

Once again, another Atlantic Canada town makes the list as the Moncton real estate market saw the overall MLS® HPI composite benchmark price climb more than 23 per cent in August to $327,300. This comes as sales activity slowed, plummeting nearly 26 per cent and 13.2 per cent below the five-year average.

“As a result, it appears that sellers may be waiting for the market to stabilize before listing their homes,” said Mike Power, President of the Greater Moncton REALTORS® du Grand Moncton, in a news release. “Although market balance is technically still in favour of sellers, it has changed drastically over the past few months and may well move into balanced territory for the first time since 2018. As expected, with less buyers bidding on properties, prices have started to ease off their highs, with both average price and the MLS® HPI Composite Benchmark Price declining in August. We expect that market activity will remain subdued until the smoke clears and there is better visibility of what to expect in the near term.”

#6 Edmonton, Alberta

An affordable major urban centre in Canada? Yes, and its name is Edmonton.

The Edmonton real estate market has exploded in growth over the last 12 months. But prices are still down from the rest of the country and are joining the broader housing sector correction or downturn.

In July, MLS® Home Price Index (HPI) composite benchmark price dipped 1.4 per cent to $410,700, according to the REALTORS® Association of Edmonton. In addition, condominiums sold for an average of $229,463, down 4.4 per cent year-over-year. Duplexes sold for nearly $373,000, down 3.9 per cent from the previous month.

“This is the first time this year that we’ve seen such large decreases in our month-over-month statistics in the Edmonton real estate market,” explained REALTORS® Association of Edmonton Chair Paul Gravelle in a news release. “Although July is typically a slower month for real estate due to holidays, we expect to see a continued downward trend as we get closer to the start of fall.”

Affordability and Value in the Prairies and Atlantic Canada

By now, it is clear that the most affordable Canadian real estate markets that provide homebuyers with the best value are situated in the Prairies and Atlantic Canada. Despite interest rates rising, prospective homebuyers can get the best bang for their buck in Alberta, Saskatchewan, and the Maritimes. What has made these real estate markets attractive is that they struck a balance throughout the last couple of years: price growth that still leaves the opportunity to afford a residential property.

The housing landscape could change over the next 12 months amid evolving trends. But will these changes impact these parts of the country?