Home Prices Are Dropping Over 3% Across Major Ontario Areas
As the winter season unfolds, real estate activity in major markets across the GTA and Ontario are showing signs of cooling off. A recent study suggests that this could be an opportune moment for prospective buyers to make a move.
Data Source From Zoocasa
National Benchmarks
According to the Canadian Real Estate Association (CREA), the national benchmark price peaked at $760,600 in June 2023 and experienced a decline over the following five months. This downward trend has made prices more aligned with budgets, offering potential buyers a favorable market, especially in the Greater Toronto Area (GTA).
Zoocasa conducted a study analyzing price drops in various Canadian cities since the summer peak. The study considered benchmark price data for 21 major markets, revealing that the majority of Canadian real estate markets have witnessed a drop of more than 3 percent in benchmark prices over the past few months.
Decline In Major Markets
Kitchener-Waterloo stands out as the city with the most significant decline, experiencing an 8.9 percent drop in benchmark price from June to November 2023, reaching $708,600. Other cities in Ontario, including London & St. Thomas, Hamilton-Burlington, Cambridge, and Guelph, also saw notable declines ranging from 6.6 to 7.8 percent.
In addition to these, other areas in Ontario, such as Ottawa and the Niagara Region, experienced more modest declines of 3.6 percent and 4.8 percent, respectively.
When focusing on single-family homes, the study identified the seven cities with the largest percentage drops in benchmark prices, all of which are in Ontario. Kitchener-Waterloo again led the way, with a 9.7 percent decline to $802,900 since June 2023. The GTA followed closely behind, experiencing a 7.8 percent decrease to $1,291,000.
The study notes a shift in affordability in Ontario cities as demand decreased, allowing prices to stabilize closer to pre-pandemic levels. Despite higher interest rates, demand for more affordable property types persisted in 2023, with condo prices not experiencing the same level of decline as single-family homes. However, Kitchener-Waterloo, the GTA, and London & St. Thomas all saw more than a 4 percent drop in average benchmark condo prices since June 2023.
While price declines have been more prominent in Ontario, the study suggests that buyers across the country still have opportunities to capitalize on less significant price drops in more affordable markets, where homeownership costs are already within accessible ranges. This presents a favourable real estate market. landscape for potential buyers looking to make a strategic move in the current real estate market.
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