Best places to buy real estate in Canada 2024 - MoneySense (2024)

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The Canadian real estate market began to recover in 2023, following a turbulent 2022 in which home prices reached record highs before tumbling gradually in response to seven consecutive Bank of Canada (BoC) interest rate hikes. In the spring of 2023, home prices started to rebound from the previous year, and by the fall, the number of new listings caught up to the number of sales, creating a more balanced real estate market.

Many of the housing challenges that plagued the market in 2022 improved in 2023, except for one: tightened mortgage affordability caused by high interest rates. In March 2023, the BoC held its benchmark rate for the first time in a year, providing Canadian home owners with some interest rate relief; however, the summer brought two more interest rate hikes and pushed many buyers back to the sidelines. In effect, this slowed sales and led to a quieter-than-predicted fall real estate market.

Now that many economists predict interest rate cuts are coming in 2024, could this be the year for a complete rebound in real estate activity? Some markets in Canada are already showing signs of heating up, while other regions never slowed down.

For our 2024 edition of Where to Buy Real Estate in Canada, MoneySense partnered with Zoocasa—an award-winning consumer real estate search platform—to reveal the best places to buy property in Canada, including the top neighbourhoods in the country’s most in-demand real estate markets.

Best places to buy real estate: National overview

In the table below, you’ll find the top places to buy real estate in Canada, based on Zoocasa’s analysis of data from 45 different regions. Slide the columns right or left using your fingers or mouse to reveal more data. You can download the data to your device in Excel, CSV and PDF formats.

Source: Zoocasa

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What’s shaping the Canadian real estate market in 2024?

Overall real estate activity was relatively stable in 2023, with the exception of the spring, when Canadians began feeling more urgency to buy. As borrowing costs increased throughout the year, with average five-year fixed mortgage rates climbing to a 15-year high of 5.49% in October, many buyers and sellers took a step back. According to the Canadian Real Estate Association (CREA), residential sales activity for 2023 came in about 11% below 2022, and as a result of softening demand, prices also declined year-over-year in many cities.

“After years of unprecedented competition, 2023 brought a shift back to a slower home-buying process. Motivated buyers had the opportunity to deliberate more carefully and negotiate at a more measured pace,” says Carrie Lysenko, chief executive officer of Zoocasa. “As prices come down and forecasts suggest a drop in interest rates, buyers that took to the sidelines are growing more optimistic.”

Canada’s annual rate of inflation trended downward throughout 2023 and finished the year at 3.4%—not quite the BoC’s 2% target, but a positive sign that the economy was returning to “normal” from the inflation highs of 2022. In response to the shifting economic outlook, five-year fixed rates began to fall from their October peak through to early 2024.

“Last year, tight borrowing conditions and unpredictability surrounding the BoC’s next moves left buyers feeling uncertain. However, a stabilization in the market could lead to increased activity and a resurgence in buyer confidence this year,” says Lysenko.

The majority of markets we analyzed finished 2023 with year-over-year declines in benchmark price, including much of Ontario and British Columbia. And, for the few markets that experienced home price growth, 2023 was still a notably slow year. Prices grew at much slower rates than in 2022 and 2021, and growth was limited to mostly smaller markets like Saint John and Greater Moncton. What’s more, three-year and five-year price growth data indicates that cities in Atlantic Canada and the Prairies are leading the way in long-term price gains.

One of the most significant trends to emerge in 2023 was an improvement in home supply. In January, there were 3.1 months of inventory available across Canada, and in December, it was up to 3.7 months. The surge in supply could be felt coast to coast, as nearly every province finished 2023 with year-over-year increases in months of inventory. Housing inventory is closely linked with demand and home prices; as demand increases, inventory decreases and prices tend to go up. Whether inventory levels further improve will largely depend on the number of Canadians who enter the market and the rate of new construction in Canada.

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Canada’s top three real estate markets in 2024

1. Greater Moncton, N.B.

As the hub of the Maritime provinces and the third-largest metropolitan area in Atlantic Canada, Greater Moncton continues to be a desirable place to buy a home in 2024. Low home prices and steady economic growth have helped it top our ranking for the third consecutive year. Greater Moncton boasts the highest value score on our list, at 4.68, and has proven itself to be the standout for affordable real estate in Canada.

What’s happened in the Greater Moncton real estate market?

Greater Moncton’s 2023 benchmark price was $328,383. That’s more than $400,000 below the national average—only five other markets hold that distinction, including the other two cities in our top three.

Canadians recognize the affordability of New Brunswick. And in the third quarter of 2023, it was the only province aside from Alberta to experience a small net gain in interprovincial migration, according to Statistics Canada. However, across the Maritimes, interprovincial migration (particularly from Ontario) slowed considerably compared to the period of 2020 to 2022. As in other provinces, international migration played a role in boosting New Brunswick’s population.

“Greater Moncton attracts a lot of families, retirees, newcomers, investors—people from all walks of life. Retirees can often live mortgage-free here, while new families can enjoy a slower pace of life with more time with their children,” explains local eXp real estate agent Jenny Celly. (Zoocasa, the author of this study, is wholly owned by eXp World Holdings.)

However, compared to 2021, when Greater Moncton first topped our list, price growth has slowed down. In 2023, the benchmark price was only 3% higher than in 2022; in comparison, the benchmark price grew 26% from 2021 to 2022, and 38% from 2020 to 2021. But Greater Moncton is one of the few major Canadian real estate markets whose benchmark price remained stable and did not drop off at the end of 2023.

“Like most places in Canada last year, Greater Moncton’s real estate took a little breather as people were more wary of higher interest rates,” says Celly. “Many people were moving to New Brunswick from out-of-province, so we still sold a lot of homes, but not as aggressively as in 2022.”

What’s next for real estate in Greater Moncton?

In contrast to other major Canadian cities, which have not returned to their record-high benchmark prices of 2022, Greater Moncton set a new record in December 2023, with that month’s benchmark price reaching $341,900. Demand in Moncton remained strong for much of 2023, which kept the benchmark price up, with minimal dips throughout the year.

“Our population has grown so much, and that’s also pushed rental prices up,” says Celly. “This has caught the attention of investors, who are now eyeing investment opportunities in New Brunswick.”

Beyond investors, the anticipation of declining interest rates in 2024 is poised to revive buyer confidence across the board and bring in a busier real estate market in Greater Moncton.

However, that outlook hinges on interest rates and ripple effects from Ontario’s market, says Celly, as affordability and remote work opportunities continue to influence buyers’ choices. “How the Ontario market plays out will be a factor for New Brunswick,” she says.

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2. Saint John, N.B.

New Brunswick’s most famous seaport city climbed our ranking from fifth place last year to the second spot in 2024. As the only city on the Bay of Fundy, Saint John offers a vibrant blend of natural beauty and urban life. With a value score of 4.36, the city has one of the most affordable benchmark home prices on our list, and it offers home buyers a good chance to build equity quickly.

What’s happened in the Saint John real estate market?

Saint John finished 2023 with a benchmark price of $286,592—more than $445,000 below the national average and $1 million below Ontario’s Oakville-Milton, the most expensive region of those we analyzed. Despite being one of just three markets with a benchmark price below $300,000, Saint John has experienced steady price appreciation. The 2023 benchmark price was 3% higher than in 2022, 48% higher than in 2020, and an impressive 60% higher than in 2018.

“Out-of-province buyers are drawn here for two main reasons: affordability and quality of life. They can work less, enjoy more work-life balance, and thanks to lower prices, they’re able to purchase more for less. Both factors are big pluses for moving here,” explains local eXp real estate agent Emily Parent.

Similar to Greater Moncton, however, the city has experienced significant population growth, which could strain the region’s housing supply.

“As a result of increasing interest rates, there wasn’t as much urgency to buy last year, which slowed market activity,” says Parent. “This also meant sellers weren’t as excited about listing and wanted to hold off for a resurgence in activity, which kept inventory low.”

Not surprisingly, the most affordable properties in Saint John attracted the most attention last year. “The $300,000-and-under market is still very competitive,” says Parent. “Whether it’s first-time home buyers or those downsizing, that market is always in high demand.”

What’s next for real estate in Saint John?

Even with the benchmark price climbing consistently for much of 2023, Saint John is one of the most affordable cities for real estate in the Maritimes and all of Canada.

“Saint John has been moving in a very positive direction for growth. There’s been a lot of attention on improving the area, with more industries coming here, new services being created or expanded, and more housing development plans,” says Parent. “I think this will all contribute to Saint John’s market continuing to be strong in the years ahead.”

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3. Sault Ste. Marie, Ont.

For the second year in a row, northern Ontario’s third-largest city ranked in our top three best places to buy real estate in Canada. Located on St. Mary’s River and facing the Michigan border, Sault Ste. Marie offers home buyers some of the most affordable home prices in Ontario and boasts a value score of 4.31.

What’s happened in the Sault Ste. Marie real estate market?

At more than $450,000 below the national average, Sault Ste. Marie’s 2023 benchmark home price was the lowest among the top three best places to buy real estate in Canada. The benchmark price of $283,192 was unchanged from 2022—however, it was 58% higher than in 2020 and 78% higher than in 2018.

“After the pandemic hit, Sault Ste. Marie was put on the map, and we saw an influx of out-of-town investors and buyers purchasing properties,” explains local eXp agent Jennifer Parsons. “We’re still seeing that, and I think we’re going to continue to see an upward trend as people are priced out of other Ontario markets, and the baby boomer demographic sells off assets and makes the move up north for a quieter retirement.”

With plans to bring in more high-paying jobs through economic development, Sault Ste. Marie is drawing in a growing number of prospective buyers.

“A big thing to note is that colleges and universities have brought many international students,” says Parsons. “Unfortunately, those schools don’t have the infrastructure to support them, so a lot of out-of-town investors buy out single-family homes and rent them out to students.”

What’s next for real estate in Sault Ste. Marie?

Compared to other cities in Ontario, the Soo, as it’s affectionately called, stands out for its affordability and its prospects of future growth.

“Geographically speaking, the Soo is an interesting prospect for commercial investment,” says Parsons. “We’re a border city with the U.S. that offers a lock system right into Lake Superior shipping channels, and we’re placed between southern Ontario and the western part of Canada on the Trans-Canada Highway. Naturally, demand for homes in the area will continue to increase as more companies look to northern Ontario.”

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Methodology: How we determined the best places to buy real estate

To determine the regions and neighbourhoods that offer home buyers the greatest value in 2024, Zoocasa studied real estate data from the top real estate markets across Canada. Rankings are based on data collected in early 2024, and interviews were conducted around the same time.

National ranking

The home price data for the national ranking was pulled from the CREA. We determined which areas to include based on what information was available from CREA. It does not provide data for all Canadian cities and markets, meaning some areas may not be covered in our report. The reported data for certain cities, such as Hamilton and Burlington, is combined by CREA and reflects the benchmark price of the two cities combined.

We ranked regions and neighbourhoods within the same geographic area against each other. The overall rankings and scores are based on the areas’ benchmark home prices and recent real estate price growth.

Value

Our value score accounts for an area’s composite benchmark home price as of Dec. 31, 2023, relative to the overall regional average, with more affordable home prices contributing positively to the score. The calculation also accounts for one-year, three-year and five-year home value growth in the area, with more weight assigned to the most recent data. Although recent comparables are better indicators of value, a positive and steady trend of home value growth was considered as part of the overall calculation.

Neighbourhood rankings

In addition to home price data and value scores, our neighbourhood rankings also factor in neighbourhood economics data, which we weighted equally with value in the overall evaluation. These neighbourhood economics scores are based on factors commonly considered in economic and affordability indexes: the percentages of households that own or rent, education levels, median income and household income.

Qualitative factors

To gain further insight into each neighbourhood, we have included additional information on amenities and accessibility, as well as the percentage of households with children. While we did not use these factors to determine the overall ranking, they helped us assess the lifestyle in each area.

The neighbourhood accessibility scores comprise a walk score, transit score and bike score. Each factor is given a score out of 100; the three scores are weighted at 60%, 30% and 10%, respectively, for a neighbourhood accessibility score out of 5.

Data sources

We used data from the following organizations: Statistics Canada, CREA, Nova Scotia Association of Realtors (NSAR), Toronto Regional Real Estate Board (TRREB), Realtors Association of Edmonton (RAE), Calgary Real Estate Board (CREB), Greater Vancouver Realtors (GVR) and WalkScore.

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Read more about buying a home:

• Mortgage affordability calculator
• The complete guide for first-time home buyers in Canada
• Where to find the first home savings account
• Buying a second home: How it works in Canada