What goes up must come down, or so they say; this hasn't traditionally been the case for housing prices in Toronto.
And yet, in the fallout of a global pandemic that pushed the cost of living in The GTA to historic highs, we are now seeing housing prices decline — albeit not to as low as they were before theTD Economics' Rishi Sondhi predicts that average home prices across Canada could fall by 20 to 25 per cent"on a peak-to-trough basis" from the first quarter of 2022 to the first quarter of 2023.
"Reflecting their affordability deteriorations, steeper declines are forecast in B.C and Ontario while more middle-of-the-road retrenchments are likely in Alberta, Quebec, and the Atlantic Region. Meanwhile, we expect prices to hold up better in Manitoba and Saskatchewan over this period,""Our forecasted decline in national home prices would only partially retrace the 46% runup over the course of the pandemic.
While"recalibration" may be an appropriate term for some parts of the country, the TD report warns that prices won't fall equally. They"Home prices have fallen by the most in Ontario and B.C. — two markets which saw rapid affordability deteriorations during the pandemic. What's more, elevated investor demand in Ontario left it more vulnerable to a correction," writes Sondhi.
"Remote work and the desire for larger living spaces prompted buyers to bypass larger urban centres for nearby suburbs or exurbs. Some chose to locate even further away . These behavioural shifts caused a shock wave to price growth in markets further afield to the larger centres within B.C. and Ontario, that is now deflating faster than in the major markets."
25 percent : Prices soared For so long But now It's broken Soon to be Gone With no More money To borrow Or steal The anxiety of a Speculator Just got Real housingmarket Toronto poem poetrytwitter
Good. These so called homes, built from cheap plywood and 2x4s are worth C$200k. at most.
Is it really 'unprecedented'?
Good time to buy lol
That's too optimistic.I believe recent domestic home violence is so much related to that. You can't just over-smart the banks and the market.
Will believe it when I see it
Now let’s get rents to drop
Of course since I bought the house it had to happen. 😂
'Unprecedented' Late 90's is calling.