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Affordability

Home prices in Canada have been steadily on the rise for the last few years, especially in the hottest markets such as Vancouver and Toronto.  The average home price in Canada as of August 2017 was $472,247, whereas if we go back to 2008, before the recession, home prices were only an average of $304,604!  And if you were buying in 1988, the average Canadian home would only cost you $129,702! 

Can you imagine your 5% down payment being $6,485 instead of today’s $23,612?  This means that over the course of three decades our national average home price has increased 364%. 

Minimum wages simply haven’t kept up with home prices over the last 30 years, leaving many Canadians struggling to leave the rental market and become home owners.  In 1988, the highest minimum wage across Canada was $4.75 in Ontario. Today, Ontario’s minimum wage is $11.60, which is only an increase of 244% over the last 29 years.  

As you can see, Canadians home ownership costs are increasing drastically and wages aren’t keeping pace. This pricing gap keeps new home buyers out of the market, or drives them to relocate to a place where homes are more affordable. 

As of August 2017, British Columbia had the highest-priced average home at $678,152, while New Brunswick comes in as least expensive at $167,426.  The difference between the average home price in British Columbia and New Brunswick is $510,726!  That’s more than the national average housing price!

So, since average home prices differ by more than half a million dollars across the nation, let’s explore our beautiful country and see what type of property we can buy for $1.5 million and for $200K (or less!)

Vancouver, British Columbia
Price: $1,498,000
Age: 68 years
Lot size: 4,026 sq ft
Sq Ft: 1,500
4 bedrooms/2 bathrooms

Surrey, British Columbia
Price: $199,888
Age: 36 years
Lot size: 640sq ft
Sq Ft: 640
1 bedrooms/1 bathrooms

 

Halifax, Nova Scotia
Price: $1,495,500
Age: 59 years
Lot size: .5 Acres
Sq Ft: 4,100
5 bedrooms/3.5 bathrooms

 

Milford, Nova Scotia
Price: $189,900
Age: 62 years
Lot size: .5 - 1 Acre
Sq Ft: 936
2 bedrooms/2 bathrooms

Winnipeg, Manitoba
Price: $1,475,000
Age: 36 years
Lot size:  26713 sq ft
Sq Ft: 4458
6 bedroom/6 bathroom

Winnipeg, Manitoba
Price: $199,500
Age: 70 years
Lot size:  4522 sq ft
Sq Ft: 970
2 bedroom/1 bathroom

As you can see from these home listings, there is a vast difference in what you can purchase in regions across Canada.  For instance in Vancouver, $1.5 million gets you a smaller home and typically less land. And for under $200,000, there wasn’t a single home with land available in Vancouver – the closest is buying a condo outside of the Vancouver city itself!

Once you travel to Nova Scotia, properties have beautiful elaborate homes with larger parcels of property and heritage homes.   And the Prairies also gives buyers more for less, with properties offering larger parcels of land and cheaper home prices.

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