Key Takeaways:
- For years, Ontario’s real estate market has been burning hot, but things may soon change, with certain areas suffering more than others.
- According to the poll, Bancroft, Chatham Kent, and Windsor-Essex are expected to see price drops.
The property market in Ontario has been scorching hot for years, but that may soon change, with some places being hurt more than others.
The Canadian housing market has reached “an inflection point,” according to a recent analysis by Desjardins, a financial services cooperative in Canada.
Home prices have steadily declined since the Bank of Canada began raising interest rates to battle inflation. According to Desjardins, the average home price in Canada declined 2.6 percent month over month in March and 3.8 percent in April.
These drops are expected to continue, according to the analysis, and would be felt most acutely in Ontario, where property prices might drop by as much as 18%.
“We predict a fall in sales activity and prices in smaller towns outside of large urban areas to lead to the housing market correction in Ontario,” the paper states.
“We believe prices will fall the most in communities where prices rose the most during the pandemic, resulting in the greatest erosion of affordability.”
As a result, the research suggests that costs will fall in several regions just a few hours outside of Toronto.
According to the survey, Bancroft may witness the highest price decline, followed by Chatham Kent and Windsor-Essex.
“I always assumed the first towns to face falling prices would be the outer communities around Toronto,” Toronto real estate agent Desmond Brown told CTV News Toronto.
“The prices we saw were simply absurd in terms of their long-term viability,” Brown added.
As a result, he believes that prices in these areas will soon return to pre-pandemic levels.
PRICES IN TORONTO MAY CONTINUE TO BE HIGH.
While prices in rural areas may soon fall, Brown believes Toronto’s market will take longer to cool.
“In comparison to peripheral regions, Toronto has a lot greater chance of keeping prices higher,” he said. “That’s because the city is the country’s economic engine [and] there’s still a lot of demand for folks to live in Toronto, although we’re seeing more hybrid work models these days.”
According to the research, Toronto is among the lowest five cities where prices are anticipated to fall.
Source: CTV news
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