One standout year was 2022, during which Canada witnessed a record-breaking influx of immigrants and experienced a staggering 31 per cent increase in the national average home price compared to 2021. However, 2023 took a different turn, with a 5.5 per cent drop in the national home price, despite immigration reaching a new record of 3.9 per cent year-over-year growth, though rising interest rates likely played a significant role in the price decline. 

Long-term outlook: home prices and population growth on the rise

Despite occasional price drops, the long-term trend suggests that home prices and population growth are likely to continue their upward trajectory, particularly in major metropolitan areas like Toronto, Vancouver and Calgary, which attract the majority of newcomers. This is a vital consideration for potential homebuyers, as waiting for a significant downward trend in prices might not be realistic.

Zoocasa’s analysis also highlights that the largest drop in the national average home price in the past 18 years occurred in 2009, during the Financial Crisis, when prices fell by 7.6 per cent. However, prices quickly rebounded, and over the subsequent years, housing affordability worsened due to population growth.