Canadian home prices have fallen 21.3% from their peak, yet affordability remains below historical norms. The reason is simple: the purchase price is only one part of the equation. Higher borrowing costs can keep monthly payments elevated, while home values remain expensive compared with household incomes. Limited supply, construction costs, and demand in major markets add further pressure. The outlook could improve if mortgage rates ease, incomes grow faster, and housing supply expands. Until then, buyers should focus on payment affordability, stress-test their budgets, and evaluate local market conditions—not just headline price changes.
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