Posthaste: Here’s where home prices plunged the most in tough year for Canada’s housing market

Only a third of Canada's major markets have seen a price increase since JanuaryYou can save this article by registering for free here. Or sign-in if you have an account.Subscribe now to read the latest news in your city and across Canada.Subscribe now to read the latest news in your city and across Canada.Create an account or sign in to continue with your reading experience.Create an account or sign in to continue with your reading experience.It’s been a tough year for Canada’s housing market and judging by last month’s numbers, recovery is still a ways off.The fall market was basically “a non-event” as homebuyers played a waiting game with the growing ranks of sellers, said Robert Hogue, assistant chief economist for Royal Bank of Canada.Home sales have flatlined since July, dipping 0.6 per cent in November from the month before, almost erasing the small gain in October, he said.“Whether buyers’ measured approach is tactical or out of caution amid economic uncertainty, the implication is the same: Strong-arming sellers into reducing prices in many markets,” said Hogue.Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.The composite MLS Home Price Index has slipped 0.7 per cent in the past four months and is now down 3.7 per cent from a year ago.According to online realtor Zoocasa, only a third of Canada’s major markets have seen a price increase since January.Quebec City has had an astonishing run this year, with prices rising more than 11 per cent to $432,400, followed by Montreal, the second highest gainer. Prices rose moderately in Winnipeg, Saskatoon and Regina.Most markets, however, did not fare so well with benchmark prices falling in 10 of the 16 Canadian regions Zoocasa included in its study.Ontario led the price drops this year. The benchmark price in the Greater Toronto Area fell $132,500 to $956,800 between January and October, a more than 12 per cent drop.Hamilton/Burlington and Kitchener-Waterloo weren’t far behind, with prices falling 10 per cent and 9.6 per cent, respectively. Prices in London/St. Thomas fell almost 10 per cent, down $61,800 to $561,400.Ottawa’s 6.3 per cent decline in home prices beat the Greater Vancouver Area, where prices shed 5.2 per cent.Canada’s housing market stalled even as the Bank of Canada was cutting interest rates, and there is a theory that buyers were holding out for even cheaper rates.“With the central bank signalling it’s done this cycle, it could be the hint some buyers were waiting for to make a move,” said Hogue.RBC expects lower interest rates and price drops in certain markets to bring more buyers back in the new year.“Still, the road ahead is poised to be bumpy with affordability challenges persisting in several major markets, and sharply lower immigration creating headwinds,” said Hogue. Sign up here to get Posthaste delivered straight to your inbox. Canada’s population dropped in the third quarter, the first quarterly decline on record outside of the pandemic.The population fell by 0.2 per cent to 41.6 million, a dramatic shift from the immigration boom in 2023 and 2024. The decline was led by a record drop in non-permanent residents, as Prime Minister Mark Carney continued Justin Trudeau’s policy to cut the number of foreign students, temporary workers and asylum-seekers.“A major population adjustment is well underway, and it remains one of the biggest economic stories in Canada,” said Robert Kavcic, senior economist with BMO Capital Markets, in a note.The impacts BMO is watching include a weaker rental market, a tighter job market for youth and a pickup in productivity and real GDP per capita.Empty nesters Colin and Marcella are ready to retire but they are worried about market volatility and want confirmation their investment portfolio will comfortably sustain them throughout retirement. They do not have company pensions, but their investment portfolio is worth about $2.75 million. Family Finance explains how the couple can grow their savings and retire in 18 months. Find out moreInterested in energy? The subscriber-only FP West: Energy Insider newsletter brings you exclusive reporting and in-depth analysis on one of the country’s most important sectors.Sign up here.Want to learn more about mortgages? Mortgage strategist Robert McLister’s Financial Post column can help navigate the complex sector, from the latest trends to financing opportunities you won’t want to miss. Plus check his mortgage rate page for Canada’s lowest national mortgage rates, updated daily.Visit the Financial Post’s YouTube channel for interviews with Canada’s leading experts in business, economics, housing, the energy sector and more.Today’s Posthaste was written by Pamela Heaven with additional reporting from Financial Post staff, The Canadian Press and Bloomberg.Have a story idea, pitch, embargoed report, or a suggestion for this newsletter? Email us at posthaste@postmedia.com.Bookmark our website and support our journalism: Don’t miss the business news you need to know — add financialpost.com to your bookmarks and sign up for our newsletters herePostmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. 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