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To shop or not to shop (for a home).

With mortgage rates up, you may be waiting for prices to fall before checking out your home buying options.

Have Canadian home prices actually fallen? Where are they going from here? Let's look at some numbers and what the experts are thinking.

Add to cart? How to decide if the timing's right to buy a home.

It's a decision hand-wringer — if you hold off, will prices come down to help you save more on your mortgage?

During the pandemic, home buying and selling became a national obsession. Canada hit an all-time peak for home prices in March 2022, up roughly 45% compared to pre-pandemic levels. Experts had already been saying Canada was in a housing bubble, so that's quite the surge.

Are home prices down from peak?

Mostly, yes. After hitting a peak in March 2022, the Bank of Canada started hiking interest rates at the fastest pace in its history and, therefore, in Canadian homeowners' history. That put the brakes on the home-price surge.

But the 'peak' was a peak of ALL TIME in Canada, so how much have they actually come down since then?

The composite average MLS® HPI (Home Price Index), not seasonally adjusted, shows that home prices declined about 15% from March's peak:

  • From a March 2022 high of $868,300
  • To $735,400 in October 2022 (a 15% decline)

These numbers include the most expensive Canadian markets, Vancouver and Greater Toronto — but this decline (percentage varies by location) still speaks for the country as a whole, save a region or two that have seen slight increases, such as in the Atlantic provinces.

Let's take a closer look at how home prices compare longer term.