Canada’s housing market ended off a turbulent year with prices at a 22-month low. Canada’s average home price has once again decreased on a monthly basis to $626,318 for December 2022. This is the lowest it’s been since January 2021. That’s a decrease of 1% from last month and it’s 12% lower compared to last year’s average sold price in December 2021, as Canada’s housing market continues to feel the effect of rate hikes and slowing demand. Nationally, sales during the month of December 2022 are down 39% year-over-year to 21,840 transactions.

Canada’s MLS Benchmark Price, which measures the price of a “typical” home in Canada, was $717,000 in December 2022. That’s a 7.5% drop compared to last year. The benchmark price has fallen on a monthly basis since March 2022, which was when housing prices in Canada peaked. Since then, multiple Bank of Canada rate hikes have caused Canadian mortgage rates and prime rates to rise, while Canada’s inflation rate remains elevated.