Market Update for Sept 22

On a monthly basis, average home prices fell in six Canadian cities and increased in four urban markets in August, according to a new market survey by Ratehub.ca.

“Mortgage rates continued to increase slightly from July to August 2023 with the stress test remaining above 8%,” said James Laird, co-CEO of Ratehub.ca. “As a result, home affordability has worsened in the majority of the cities we looked at.”

This was particularly apparent in Vancouver, where buyers will need $1,480 in additional income to buy a home despite the average purchase price dropping by $2,300 last month.

At the other end of the spectrum, Toronto registered the largest monthly home price decrease at $19,800.This price decline was significant enough to make an impact on home affordability, with $1,950 less income needed to purchase an average home in the city.