These are the areas where Ontario housing prices could see the biggest drop
Ontario’s housing market has been red hot for years now, but that may soon change, and some areas could be hit harder than others.
A new report by Canadian financial services cooperative Desjardins said the Canadian housing market has reached “an inflection point."
Since the Bank of Canada began to raise interest rates in order to combat inflation, home prices have steadily declined. Desjardins 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.
These decreases should continue, the report says, and will be experienced most significantly in Ontario where housing prices could decline as much as 18 per cent.
"We expect the housing market correction in Ontario to be led by a decline in sales activity and prices in smaller centres outside of major urban areas," the report reads.
"We think 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.
(Source: Desjardins)
Toronto real estate agent Desmond Brown told CTV News Toronto he “always thought the first communities to feel downward prices were going to be the outlying communities around Toronto.”
“The sustainability of the prices we were seeing was completely unrealistic,” Brown said.
Because of this, he estimates that prices in these regions could soon drop to pre-pandemic levels.
TORONTO PRICES COULD STAY HIGH
While rural areas could soon see prices drop, Brown says he thinks Toronto’s market will be slower to cool.
“Toronto has a much better chance of the prices staying higher versus outlying communities,” he said. “That’s because of the city being the economic engine of the country [and] there’s still a huge demand for people to live in Toronto, despite us seeing more of a hybrid work model these days.”
The report lists Toronto in the bottom five regions expected to see price decreases.
With files from Tom Yun
CTVNews.ca Top Stories
Parents of infant who died in wrong-way crash on Ontario's Hwy. 401 were in same vehicle
Ontario’s Special Investigations Unit has released new details about a wrong-way collision in Whitby on Monday night that claimed the lives of four people.
Three Quebec men from same family father hundreds of children
Three men in Quebec from the same family have fathered more than 600 children.
B.C. mayor stripped of budget, barred from committees over Indigenous residential schools book
A British Columbia mayor has been censured by city council – stripping him of his travel and lobbying budgets and removing him from city committees – for allegedly distributing a book that questions the history of Indigenous residential schools in Canada.
OPP's mandatory alcohol screening during traffic stops 'not acceptable': CCLA
A spike in impaired driving-related collisions has caused Ontario’s provincial police to begin enforcing mandatory alcohol screening (MAS) at all traffic stops in the Greater Toronto Area -- a move one civil rights group says is ‘not acceptable.’
Auston Matthews to miss second straight playoff game with Toronto Maple Leafs facing elimination
Auston Matthews will miss the Maple Leafs' must-win Game 6 against the Boston Bruins.
Jurors in Trump hush money trial hear recording of pivotal call on plan to buy affair story
Jurors in the hush money trial of Donald Trump heard a recording Thursday of him discussing with his then-lawyer and personal fixer a plan to purchase the silence of a Playboy model who has said she had an affair with the former president.
Southern Alberta store broken into by burly black bear
Staff at a small southern Alberta office supply store were shocked to find someone had broken into the business last week, but they were even more confused when they discovered the culprit was a bear.
Captain sentenced to 4 years for criminal negligence in fiery deaths of 34 aboard scuba boat
A federal judge on Thursday sentenced a scuba dive boat captain to four years in custody and three years supervised release for criminal negligence after 34 people died in a fire aboard the vessel.
New scam targets Canada Carbon Rebate recipients
Fake text message and email campaigns trying to get money and information out of unsuspecting Canadian taxpayers have started circulating, just months after the federal government rebranded the carbon tax rebate the Canada Carbon Rebate.