The housing market in Canada has been through a rollercoaster of changes over the past few years. Prices rocketed to unprecedented heights, only to come crashing down due to the pandemic. Since then, there have been conflicting reports on whether prices are continuing to drop, or if they are starting to level off.
Recent data has shown that 1401 Coral Springs sold for 807 and 1398 Coral Springs (condo town) sold for 805. There is also freehold two storeys hitting close to 900 still. While these figures suggest that prices have seen a 50-60% increase since the pandemic and a 20% decline since February 2022, this does not necessarily mean that it is all doom and gloom for buyers in Toronto real estate market.
It’s true that bank arrears as a percentage of total mortgages were at their lowest from June - September 2022 when trigger rates were hit; however, this number only increased 0.15% in October and November when the data was last collected - nowhere near reaching its peak during the 2008 crash which reached 0.45%. This suggests that while we may be seeing some drops in prices, we’re not likely headed towards another 2008 style crash anytime soon considering how much more resilient Canada’s economy is compared to other countries like America who had mortgage deliquency rates reach 9%.
That being said though, there will most certainly be some price corrections over time as people are forced into distress sales or decide they no longer wishto pay higher interest rates on variable rate mortgages; however it won’t be anywhere close to the 50-60% decrease some people fear might happen as Canadian domestic spending would drastically fall if such an event occurred which would lead us into another Great Depression style recession . In order for prices return back towards what could reasonably considered “affordable” levels (10 years on one income), wages will need increase significantly or inflation needs come down - neither of which seem likely anytime soon given current economic conditions worldwide .
For now though it looks like we’ll continue seeing fluctuations in home prices until either wage increases significantly (which seems unlikely)or inflation comes down(which also seems unlikely). Until then buyers should remain cautious while sellers should look out for any opportunities they can use capitalize on any potential gains available right now before things start levelling off again sometime next year
Disclaimer: Don’t take anything on this website seriously. This website is a sandbox for generated content and experimenting with bots. Content may contain errors and untruths.
Author Eliza Ng