One of the signs that Canada’s real estate market was peaking back in early 2022 was the long list of cities with average prices of $1-million or more. Amid signs of a potentially robust spring market for housing, now seems a good time to review what’s happened to prices in those cities.
Housing has definitely come down in cost since 2022. The average price of a resale home in February 2024 was $685,809, 16 per cent below the peak average of $816,720 in February 2022. Still, prices in several of the million-dollar cities have held up well.
Vancouver and Toronto topped the list back in early 2022, and they both still have prices just above $1-million. Now, let’s look at how the other million-dollar markets have fared:
– The Fraser Valley: This area in southern B.C. had an average price of $994,600 in February 2024
– Oakville-Milton, Ont.: The market in these cities on the western edge of Toronto is strong, with an average price of $1.3-million in February 2024.
– Orangeville, Ont.: The average price in February 2024 was $776,509.
– Hamilton-Burlington: Average prices in these southern Ontario cities came in at $835,900 in February.
– Mississauga, Ont: Average price of $1.1-million in this city just to the west of Toronto.
– York Region: Prices in this area north of Toronto averaged $1.3-million in February.
– Durham Region: Prices in this area located to the east of Toronto averaged $914,677.
The persistence of high prices in many cities means only lower mortgage rates will improve affordability in the near term. We’ll get more clarity on what’s ahead for borrowers at the next Bank of Canada announcement on April 10.
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Rob’s personal finance reading list
About your stash of cash
Thoughts on what to do with cash sitting in your investment account. High interest rates have prompted the investment industry to offer a wide selection of parking spots for uninvested cash. If you let cash sit idling in your account, expect zero interest from your broker.
The 60-40 portfolio has the last laugh
Back in 2022, the traditional balanced portfolio of 60 per cent stocks and 40 per cent bonds was declared dead. The reason: Bonds, supposedly a cushion against falling stocks, fell even more than the stock market did that year. Now, it’s time for a rethink. Check out this study from the independent investing analysis company Morningstar to see how well the 60-40 portfolio mix has performed historically.
You can buy a house from Amazon
Heard about the tiny house trend? We’re basically talking here about a tiny house in a box that you assemble yourself. Here’s a discussion of tiny houses sold by Amazon in the United States. Yes, Amazon.ca sells them, too. Just search under prefab home.
What’s the deal with mid-grade gasoline?
Some vehicles need premium gas to run properly or achieve peak efficiency. If you don’t need premium, regular is the obvious choice. Now you understand the mystery of mid-grade.
Ask Rob
Q: I’m trying to figure out when withholding taxes come into play for non-registered and TFSA accounts holding ETFs.
A: Withholding taxes are the amount taken off foreign dividends paid by foreign stocks held by certain exchange-traded funds. Here’s a definitive guide to ETF withholding taxes in U.S. equity ETFs and in international ETFs.
Do you have a question for me? Send it my way. Sorry I can't answer every one personally. Questions and answers are edited for length and clarity.
Tools, Explainers, Guides and Charts
A summary of credit union deposit insurance plans in all provinces, with links to get further information.
The Money-Free Zone
Some George Harrison greatness that just seems right for the times – Isn’t It a Pity, from the All Things Must Pass album. I like the Galaxie 500 and Nina Simone versions at least as much.
Watch this
A financial planner walks people through the process of completing a T3 Trust Income and Information Return to report a bare trust. Save for next year – the Canada Revenue Agency says it will not require people to file a T3 to report a bare trust for 2023.
On social media
A thread on X about what might be ahead for real estate commissions in Canada after a legal settlement in the Unites States that could reduce the amount of money realtors are paid for selling a home.
What I’ve been working on
– Five thoughts on mortgages, investments and savings as we count down to interest rate cuts ahead
– Seven investing and personal finance websites you’ll use all the time
– The 2024 Globe and Mail ETF Buyers Guide, Part Three – U.S. equity funds
More Rob Carrick and money coverage
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Even more coverage from Rob Carrick:
- 🎧 Catch up on Stress Test: Why millennials and Gen Z are Alberta-bound for a more affordable life • Rising interest rates brought pain for new homeowners – and opportunity for house hunters • Why more Canadians are choosing to be childfree or delay parenthood • Love in the time of inflation: How to manage rising costs when dating • You're not bad at money – you're suffering from money shame • Retirement might look different for Gen Z and millennials. Here's how to plan for it • Recession-beating tips for the job market, housing, investing and the cost of life • Is the middle class dead for millennials and Gen Z?
- ✔️ The housing file: A house isn’t special. Get your head straight about the reality of home ownership • The good, the sad and the unaffordable: Saving for a home downpayment in Canada’s big cities • Property taxes are popping in some cities – how worried should you be about other tax hikes? • Our other real-estate problem – people have too much wealth tied up in houses • Borrowers and savers, here’s how to time the eventual rollback of interest rates
- 📈 Investing: Canada's top digital broker is TD Direct Investing, with an assist from the TD Easy Trade app • 2023 Globe and Mail ETF buyer's guide part one: Canadian equity ETFs • For the ultimate in cheap investing, check out the Freedom .08 ETF Portfolio • Yes, there is risk in Canadian bank deposits for the unwary and complacent • CDIC covers bank deposits, but who protects your investments if your broker goes bust? • Answers to your questions about the low-risk ETF paying almost 5% • Happy fifth birthday to one of the all-time best investing products for everyday people • An investing strategy that wins cleanly over the long term by outperforming in bad years like 2022
- 💰 Your money: Mortgage holders, savers and GIC investors, it’s time to change your thinking on interest rates • How much debt is each generation of Canadians carrying, and how do you compare? • For the sake of their financial futures, young people should leave Toronto and Vancouver • This practical new spin on a savings account might just peel you away from your big bank • Rental fraud grows amid rise in fake, falsified tenant applications • Are Canadians worse off financially now than in the 1980s? • From groceries to auto loans, here’s how much more it costs to live right now • When saving for retirement, should you change your asset mix over the course of your career? • Do retirement income needs always rise alongside inflation? Not necessarily • When the bank suggests you lock in your variable rate mortgage, it has an angle
Rob Carrick