Sales activity has been cooling off in most major real estate markets in Ontario throughout the winter season, and one recent study suggests that this may be the perfect time for prospective buyers to act.

While the national benchmark price hit its peak in 2023 in June at $760,600, prices across most real estate markets in Canada declined over the next five months, according to the Canadian Real Estate Association (CREA).

Over the past few months, prospective buyers may have found that prices are more in line with their budget compared to the spring and summer markets, including in the GTA. 

A recent study conducted by real estate agency Zoocasa analyzed which cities in Canada are experiencing the largest price drops since the summer peak. 

The agency observed benchmark price data for 21 major markets across Canada and compared how prices across different property types changed in both the past few months and year. All prices were sourced from the CREA. 

Where home prices dropped the most in Canada in 2023. Source: Zoocasa.

In the span of five months, the study found that the majority of Canadian real estate markets have experienced a drop in benchmark price by more than 3 per cent, with some markets even falling below last year's prices. 

Overall, Kitchener-Waterloo experienced the most drastic decline, with the benchmark price in November 2023 decreasing by 8.9 per cent since June to $708,600. 

"Ontario cities in particular have seen a change in affordability," the study notes. "As demand has fallen off in these Ontario markets, prices have been able to stabilize closer to pre-pandemic levels." 

In the GTA, the study found that the average benchmark price decreased in November 2023 by 7.7 per cent to $1,081,300. 

Toronto's housing market just had its worst year in over two decades😳 https://t.co/yV1MyyouU9 #Toronto #TorontoRealEstate #TorontoHousingMarket

— blogTO (@blogTO) January 4, 2024

London & St. Thomas, Hamilton-Burlington, Cambridge, and Guelph also experienced notable declines at 7.8 per cent, 7.7 per cent, 6.9 per cent, and 6.6 per cent respectively. 

Other areas in Ontario witnessed more modest declines over the second half of 2023, with Ottawa's average benchmark price decreasing by 3.6 per cent, and the Niagara Region's decreasing by 4.8 per cent. 

When analyzing single-family homes specifically, the study found that the seven cities experiencing the largest percentage drops in benchmark prices were all in Ontario. 

In this category, Kitchener-Waterloo once again experienced the greatest price decline, with the average benchmark price of a single-family home decreasing by 9.7 per cent since June 2023 to $802,900. 

The GTA followed closely behind, with the average benchmark price of a single-family home decreasing by 7.8 per cent since June 2023 to $1,291,000. 

Ontario home sold at $800k loss after 11 failed attempts to sell 🏠 https://t.co/npZEPyXUtx #Ontario #RealEstate

— blogTO (@blogTO) January 5, 2024

In the face of higher interest rates, demand for more affordable property types continued throughout 2023, leading to condo prices not experiencing the same level of decline as single-family homes. 

Despite this, Kitchener-Waterloo, the GTA, and London & St. Thomas all experienced a drop of more than 4 per cent in their average benchmark condo price since June 2023. The study found that condo prices in the GTA are down year-over-year by 0.7. per cent. 

"Though price declines have been more prominent in Ontario, buyers across the country still have opportunities to capitalize on less significant price drops in more affordable markets, where homeownership costs are already more within an accessible range," the study concludes.