Canadian real estate prices surged higher as rates were cut, then plunged as rates climbed. According to a new BMO Capital Markets analysis, markets have retraced a significant portion of their losses despite higher interest rates. In fact, some real estate markets are even hitting new record highs alongside climbing interest rates.
Tracking The Canadian Real Estate Correction And Recovery
The bank’s chart shows the peak-to-trough decline, relative to the current market. Bars on the chart represent the peak-to-trough price drop, which generally occurred from Feb 2022 to Feb 2023. The black dot shows where prices are relative to the start of the correction.
For example, let’s look at Toronto. The city’s bar shows that the benchmark composite HPI fell 17% from peak to trough. Since hitting the bottom (trough), the dot indicates that prices remain 9% below peak. In short, nearly half of the price decline has been reversed.