How Far Has the Market Fallen, Really? A Pre-Pandemic Price Comparison
It may sometimes feel like the sky is falling along with housing prices, and you worry that you are losing money by the minute but if you can still make your mortgage payment with increases to interest rates, remember that the housing price trend is generally upward over time. After all, if we eliminate the pandemic hump in the price curve, how far have prices really fallen? Let’s find out.
The first thing that we notice is that all of these regions have higher prices in September 2022 than they did in September 2019. So, while prices have fallen in most regions from the highs of early 2022, they haven’t fallen as much as it feels like they have. Despite having risen sharply during the pandemic and then come down again, they are still above, or well above those 2019 prices.
The next thing we notice is that some of them are significantly higher. Barrie homes are highest at an average of 60% above their pre-pandemic values, followed closely by Windsor and Niagara, both with 59%. Both of these regions were considerably more affordable than the GTA and may have been destinations of choice for the pandemic exodus. The other high rollers include London at 54%, Ottawa at 45% (for detached homes), Hamilton at 41%, and the Waterloo region at 39%.
Calgary (24% higher), Winnipeg (21% higher), and Edmonton (10% higher) did not have the same degree of price surge that some regions did. Toronto was already so elevated before the pandemic that lopping the hump off the top of the pandemic curve has left it only 16% higher than in 2019.
If you’re thinking of selling, bear in mind that prices may yet fall some more before the economy restabilizes, and that real estate values are generally on an upward trend. If you’re thinking of buying, plan for the long term and you’ll build equity as the market increases, regardless of the ups and downs in the meantime.
If you’re thinking of buying or selling, FairSquare Group Realty can help.
FairSquare Group Realty supports Canadians by providing real estate experiences with incredible rewards: sellers save thousands in commission and buyers receive $2.000 cash back* when they purchase a home with one of our REALTORS®. Call 1-855-999-9740 to learn more.