Ontario’s housing market has been on fire for years now, but that may change in some areas expectedly.
A new report by Canadian financial services said the Canadian housing market has reached an inflation point.
Since the Bank of Canada began to raise interest rates in order to combat inflation, home prices have steadily declined. Report says that average price of a home in Canada fell 2.6 per cent month-to-month in March and 3.8 per cent in April.
Prices will fall the most in communities that saw the biggest price increases during the pandemic and therefore the most erosion in affordability.
As a result, multiple areas just a few hours outside of Toronto are set to see prices drop, the report claims.
Of these regions, Bancroft could see the biggest price drop, followed by Chatham Kent and Windsor-Essex, the report said.
Toronto, Hamilton, Mississauga, and Brampton all continue to have average sold prices above the $1 million mark. The average home price in Toronto's housing market was $1,243,070 for the City of Toronto and $1,254,436 for the GTA, while Brampton’s average sold price was $1,241,658. Rounding out the top three was Mississauga, which had an average sold price of $1,170,211.
The Hamilton and Ottawa housing markets remain cheaper alternatives to the GTA’s expensive home prices. Hamilton’s average sold price for 2022 was $949,149, while Ottawa’s average sold price was $740,838. Real estate in London, Ontario, also remains relatively affordable, with an average price of $771,682.
