Real Estate News

Canadian Real Estate Navigating the Storm of Depreciating Values and Emerging Opportunities


Image by: unsplash

Many homeowners who purchased single-family homes in 2022 are now grappling with the stark reality of their investments losing value over the past year. An analysis conducted by Point2 across 67 Canadian cities revealed a concerning trend: in 18 of these cities, the value of single-family homes had decreased year-over-year, with condominiums in 26 cities experiencing similar declines. The impact was particularly pronounced in Ontario, where several cities faced significant losses in property value.

Among the hardest-hit areas were certain cities in Ontario, where single-family homeowners saw their investments depreciate substantially. For instance, those who bought homes in late 2022 experienced a daily loss of $163 in property value, equating to a staggering decrease of nearly $60,000 compared to their purchase price. In the condominium market, new owners in Mississauga bore the brunt of the downturn, losing approximately $100 per day in property value, amounting to a total decline of $36,600. Kitchener and Markham also faced considerable losses in this regard.

While Ontario bore the brunt of the property value decline, other regions of Canada were similarly affected. Cities like Kelowna and Victoria in British Columbia, as well as Regina in Saskatchewan, experienced significant decreases in property values. This downturn has led economists like Benjamin Tal to characterize the current situation as a "very healthy correction," where a surplus of listings and reduced demand have transformed the market into one favoring buyers. Despite the gloomy outlook, some cities in British Columbia saw an increase in property values, offering a glimmer of hope amidst the broader downturn. For instance, Vancouver, Richmond, Burnaby, Langley, and Delta all witnessed significant increases in property values, showcasing regional variations in the housing market. Additionally, certain condominium markets, such as those in Coquitlam, Halifax, Richmond, and Calgary, saw notable earnings during the same period, indicating that not all sectors of the real estate market were equally affected.

Read the full article on: REAL ESTATE MAGAZINE


YOUR HOME WORTH

home worth

Find out what is your home worth in today's market.

Get Started

FIND YOUR DREAM HOME

home worth

Get notified instantly of homes meeting your exact criteria.

Get Started
A
Amandeep Singh
Amandeep Singh
Do you have questions?
Call or text today, we are here to help!