These are the Ontario cities where house prices have fallen the most

New homeowners may be “feeling the sting” of falling house prices in a number of Ontario cities, including Burlington, which fared the worst compared to other Canadian cities over the past 12 months, according to a recently released report.

The Point2Homes report, which reviewed condo and single-family home prices in Canada’s largest cities in 2022 and 2023, found that owners of single-family homes in Burlington who bought at the end of 2022 lost an estimated $163 every day for a year for a total of nearly $60,000.

The average price for a single-family home in the city dropped to $1,200,817 in 2023, down from $1,260,400 in 2022.

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While Burlington was the “worst-case scenario,” the report said, several other Ontario cities also “went backwards” in terms of the value of single-family homes.

Homeowners in Markham lost an estimated $154 each day, or $56,043 over the course of the year. In Mississauga, those numbers were $114 per day and $41,740 for the year. Those who purchased a single-family home in Kitchener at the end of 2022 lost approximately $109 each day, equating to $39,850 over the course of the year, according to the report.

“The year-over-year changes in home prices in the 67 largest cities in the country show that owners of single-family homes in 18 cities and condo owners in 26 cities have seen their homes lose value in the last year,” the report read.

“It used to be that real estate was the safest investment, but 2023 broke this unwritten rule.”

Condo owners saw an even worse scenario in 2023, according to the report.

“What is considered the more affordable housing option got progressively cheaper, putting condo owners' equity hopes on standby,” the report said.

The most significant loses in Ontario were seen in London, Ont. and Mississauga, which saw condos drop in price by six per cent and 5.8 per cent respectively. This means that new condo owners in Mississauga saw their properties depreciate in value by about $36,000 year-over-year. In London, condos prices dropped by about $22,600 year-over-year.

While condo prices in Toronto decreased by 3.2 per cent, the report notes that the average price for a single family home increased by 0.4 per cent in Canada’s largest city year-over-year.

“Last year showed that a real estate investment can sometimes backfire. This means Canada's newest owners from these unlucky cities might have to wait more than others to build wealth,” the report read.

While there are early signs that prices are improving for owners of single-family homes, it is not yet clear what 2024 will hold for condo owners, the report states.

“Given that real estate is a long-term investment, it's possible that condo owners are just looking at a longer timeframe for building equity,” the report concludes. 

 

Here’s a list of the Ontario cities with biggest single-family home price declines (by %):

Kitchener: -4.9 % (-$39,850)

Burlington: -4.7% (-$59,583)

Markham: -3.2% (-$56,043)

Mississauga: -3.1% (-$41,740)

Oshawa: -2.8% (-$23,451)

Brampton: -2.6% (-$28,797)

Milton: -2.4% (-$30,544)

Whitby: -2.2% (-$24,297)

Oakville: -1.7% (-$28,815)

Richmond Hill: -1.3% (-$23,576)

 

Here’s a list of the Ontario cities with biggest condo price declines (by %):

London, ON: -6% (-$22,600)

Mississauga -5.8% (-$36,600)

Barrie: -5.3% (-$28,000)

St. Catharines: -4.1% (-$18,400)

Niagara Falls: -4.1% (-$18,400)

Hamilton: -3.3% (-$16,300)

Toronto: -3.2% (-$23,200)

Brampton: -3 % (-$17,300)

Clarington: -3 % (-$16,500)

Brantford: -1.4% (-$5,400)