Here are the worst places to buy real estate in Canada
Published April 15, 2024 at 2:02 pm
A new report report ranks the best and worst cities to buy real estate this year in Canada and several Ontario cities are at the bottom.
Where to Buy Real Estate in Canada report from MoneySense in partnership with real estate brokerage Zoocasa, created the ranking of 45 communities based on value and buying conditions.
The report suggested 2023 marked the onset of recovery for the real estate market, after a period of turbulent change in 2022. Home prices reached record highs in 2022 before tumbling gradually in response to seven consecutive Bank of Canada interest rate hikes.
“After years of unprecedented competition, 2023 brought a shift back to a slower home-buying process. Motivated buyers had the opportunity to deliberate more carefully and negotiate at a more measured pace, ” says Carrie Lysenko, chief executive officer of Zoocasa.
“However, a stabilization in the market could lead to increased activity and a resurgence in buyer confidence this year.”
Where to Buy Real Estate in Canada reveals the best places to buy property based on several factors including home price growth; benchmark prices; neighbourhood characteristics like levels of income and education, and ease of travel by foot, bike and public transit; the percentage of households with kids; and monthly mortgage payments.
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Unfortunately, Mississauga is at the bottom at the list ranking number 44 as one of the most challenging places to buy real estate. And Oakville-Milton ranks dead last at 45.
Mississauga’s benchmark home price was $1,088,217 in 2023, which is $353,900 above the national average.
The report also looked at the price growth over the last five years. The report puts more weight on the most recent data.
For Mississauga, the prices actually declined by seven per cent in the last year, according to the report. While the three-year price growth was 23 per cent and the five-year price growth was 42 per cent.
A sample mortgage payment end of 2023 for Mississauga was $5,653 per month.
Mississauga got 1.1 value rating, while the lowest-ranked area, Oakville-Milton got a 0.8 value rating.
The average 2023 home price in Oakville-Milton was $1,289,633 with a three-year growth of 31 per cent. Prices also declined by seven per cent in one year. But the five-year price growth was 43 per cent.
Oakville-Milton’s benchmark home price was $555,317 over the national average.
A sample mortgage payment at end of 2023 was $6,699 per month.
The top three best places to buy real estate were Greater Moncton, New Brunswick, Saint John, New Brunswick, and Sault Ste. Marie, Ontario, according to the report.
Greater Moncton's home benchmark price was $328,383. That’s more than $400,000 below the national average. The area boasts the highest value at 4.68 with low home prices and steady economic growth.
A sample mortgage payment comes in at a more reasonable $1,706 per month, significantly lower than the lowest ranked cities.
“Greater Moncton attracts a lot of families, retirees, newcomers, investors—people from all walks of life. Retirees can often live mortgage-free here, while new families can enjoy a slower pace of life with more time with their children,” said local eXp real estate agent Jenny Celly.
See the full report here.
Lead photo: Zac Gudakov
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