Prices fall more than 30% in certain Ontario markets
“Areas in GTA's suburbs that experienced skyrocketing home prices during the pandemic are now facing a real estate crash.”
Scugog had the largest average selling price decline at 44% from February 2022 to December 2022.
According to Toronto Regional Real Estate Board (TRREB), all real estate prices across GTA fell 21% to $1.05 million in December compared to $1.33 million in February.
A housing crash is defined as a 30% or more drop in home prices, which has become a reality in select pockets of GTA.
Other suburbs that saw significant decline in average selling prices are Brock (39%), Uxbridge (37%), King (37%), and Innisfil (35%).
During the pandemic, there was a flight from urban centers to the suburbs and a surge in suburban home prices.
The rise in suburban home prices was due to more people working remotely and the desire for a bigger bang for their buck.
The bubble burst as the economy reopened and interest rates began to rise.
Innisfil saw the largest price increase in GTA at 48% from December 2021 to December 2022.
Innisfil had larger, more expensive new builds which contributed to inflated prices.
The city is also experiencing a shift in the luxury market with a significant decline in sales and prices.
“There has been a significant shift in the pandemic for homebuyer demand. Typically, the higher the price increase, the greater the drop.”
See the full story here: https://canadatoday.news/ca/some-southern-ontario-real-estate-markets-are-already-crashing-with-prices-falling-more-than-30-251576/
