The Canadian market may be tilting in favour of buyers after spending much of the past two years favouring sellers, according to a recent report analyzing borrowing data.
Nesto, a national online marketplace for mortgages, recently published a study examining its client data from September, finding the median purchase price of a home dropped across Canada by $35,000 to $440,000 from July to August.
At the same time , the median downpayment fell from $63,000 in July to $43,500 in August.
The data also showed that the median downpayment as a percentage of purchase price fell from 13 percent in July to 10 percent in August. What’s more, the metric for August was half of that this past April when the average downpayment was 20 percent of purchase price.
The average downpayment in Canada in April was also significantly highler at $70,000 while the average purchase price among borrowers exceeded $500,000.
The numbers for Alberta reveal a similar trend. Nesto’s analysis shows that the median purchase price for the province in August was about $425,000. That’s down from $452,000 in July. At the same time, the median downpayment fell from $60,000 in July to about $37,000 in August.
Notably the median downpayment as a percentage of purchase price fell from 20 percent in July to 10 percent in August.
The report concludes by suggesting the data reveals the market maynow be favouring buyers as demand falls from its pandemic highs due to rising interest rates.