Some real estate markets in Southern Ontario are already crashing — with price drops of more than 30%

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Some real estate markets in Southern Ontario are already crashing — with price drops of more than 30%
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As the pandemic push for big houses and remote living fades away, some suburbs are seeing sharp drops in prices from the housing peak

Areas in the GTA suburbs that saw skyrocketing home prices during the pandemic are now facing a real estate crash with Scugog leading the pack at a whopping 44 per cent plummet in average sales price from the February 2022 peak to December 2022.

During the pandemic, with more people working remotely, there was a flight from urban centres and a subsequent spike in suburban house prices as homeowners pursued a bigger bang for their buck, experts say. That run-up, until February 2022, saw prices skyrocket in Durham, Peel, and York. The bubble burst when the economy reopened and interest rates began to climb.

The suburbs have more detached and semi-detached homes, whereas the city has more condos, said Yolevski. Because condos cost less, when there’s less sales activity the average sales price won’t fall as drastically. Innisfil boasts bigger, more expensive, new construction builds. The high cost of materials and construction labour contributed to bloated prices, he added. The average sales price in February 2022 was just below $1.2 million. In December it was just over $700,000. “The higher home price in Innisfil was reflective of the product that was selling.”

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