What You Need to Know About Canada’s Housing Market

More than 90% of Canadians see real estate as a good investment. Whether you’re thinking of buying, selling or are actively involved in the market, the statistics below will give you a clearer perspective of the state of the market.

Current National Trends in Housing
Canada’s homeownership rate is 68%.
The average Canadian home is valued at $336,000.
Home sales for 2012 are expected to remain in line with the annual average for the last decade.
31% of Canadian first-time homebuyers will look at 10 homes before buying.
Buyers aged 25 to 34 make up 60% of first-time buyers; 25% are aged 35 to 49.
23% of Canadians aged 18 to 34 say that “having a good down payment” and “rising real estate prices” are their primary concerns in buying a home.
Average price of…
A detached bungalow: $349,974
A standard two-storey home: $388,218
A standard condo: $239,300


The average home price range is forecast to be between $315,800 and $418,700 in 2012.
Affordability
• The affordability measure of the average detached bungalow in Canada is 42.7%, meaning that homeownership costs comprise 42.7% of a homeowner’s pre-tax income.
• The affordability measure of the average standard two-storey home is 48.8%.
• The affordability measure of the average standard condo is 29.0%.
Financing the Home Purchase
Of 9.45 million Canadian homeowners, 5.7 million have mortgages
81% of Canadian homebuyers used one form of savings to purchase
their homes: Contributions to Registered Retirement Savings Plan (RRSP)
or Tax-Free Savings Account (TFSA), investments other than an RRSP or an
emergency fund.
$150,000: The average outstanding principal on a mortgage.
The average interest rate: 3.92%, down from 4.22% from a year ago.
Interest rates are projected to remain low during 2012.
78% of Canadians who renewed their mortgage in the past 12 months saw their interest rate reduced.
23% of mortgage holders refinanced in the past year.
1.35 million Canadians renewed or refinanced their mortgages in the last year, which saved them $2.7 billion.
37% of Canadians who renewed or refinanced their mortgages chose a variable rate mortgage.
60% of mortgages issued were fixed-rate mortgages
Canadians, on average, frequently add an additional $400 per month to their regular mortgage payment.
Fewer Canadians are taking out equity in their homes: 10% did so in the last year, compared to 40% the year before.
72% of Canadians with mortgages aspire to be mortgage-free by 65 years of age.
Click Here for a downloadable pdf of the above statistics and their sources.
While these figures provide an overview of the national market, keep in mind that your local market may differ. Contact us for more information about your local market at doug@creb.com or 403-283-7113.