{"id":9704,"date":"2023-02-02T21:44:32","date_gmt":"2023-02-02T21:44:32","guid":{"rendered":"https:\/\/wahi.com\/ca\/en\/?p=9704"},"modified":"2024-01-05T14:38:43","modified_gmt":"2024-01-05T14:38:43","slug":"gta-home-prices-pre-pandemic","status":"publish","type":"post","link":"https:\/\/wahi.com\/ca\/en\/learning-centre\/real-estate-101\/sell\/gta-home-prices-pre-pandemic","title":{"rendered":"Home Prices in GTA\u2019s Hardest-Hit Areas Still Way up From Pre-Pandemic Days"},"content":{"rendered":"\n\n[et_pb_section fb_built=”1″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” width=”95%” max_width=”100%” custom_margin=”||-24px||false|false” custom_padding=”55px||||false|false” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][wahi_breadcrumb _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][wahi_breadcrumb-link title=”Real Estate 101″ _builder_version=”4.18.0″ _dynamic_attributes=”link_option_url” _module_preset=”default” link_option_url=”@ET-DC@eyJkeW5hbWljIjp0cnVlLCJjb250ZW50IjoicG9zdF9saW5rX3VybF9wYWdlIiwic2V0dGluZ3MiOnsicG9zdF9pZCI6IjcyMiJ9fQ==@” global_colors_info=”{}”][\/wahi_breadcrumb-link][wahi_breadcrumb-link title=”Sell” _builder_version=”4.18.0″ _dynamic_attributes=”link_option_url” _module_preset=”default” link_option_url=”@ET-DC@eyJkeW5hbWljIjp0cnVlLCJjb250ZW50IjoicG9zdF9saW5rX3VybF9wYWdlIiwic2V0dGluZ3MiOnsicG9zdF9pZCI6IjIxMDYifX0=@” global_colors_info=”{}”][\/wahi_breadcrumb-link][wahi_breadcrumb-link title=”@ET-DC@eyJkeW5hbWljIjp0cnVlLCJjb250ZW50IjoicG9zdF90aXRsZSIsInNldHRpbmdzIjp7ImJlZm9yZSI6IiIsImFmdGVyIjoiIn19@” _builder_version=”4.18.0″ _dynamic_attributes=”title” _module_preset=”default” module_text_color=”#686E6E” global_colors_info=”{}”][\/wahi_breadcrumb-link][\/wahi_breadcrumb][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _dynamic_attributes=”content” _module_preset=”default” header_font_size=”3.5rem” header_line_height=”4.5rem” header_font_size_tablet=”42px” header_font_size_phone=”2.75rem” header_font_size_last_edited=”on|phone” header_line_height_tablet=”4.5rem” header_line_height_phone=”3.2rem” header_line_height_last_edited=”on|desktop” global_colors_info=”{}”]@ET-DC@eyJkeW5hbWljIjp0cnVlLCJjb250ZW50IjoicG9zdF90aXRsZSIsInNldHRpbmdzIjp7ImJlZm9yZSI6IjxoMT4iLCJhZnRlciI6IjwvaDE+In19@[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”1px||1px|||” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][wahi_socialsharing _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][\/wahi_socialsharing][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” text_font_size=”24px” text_line_height=”1.5em” custom_margin=”||10px|||” global_colors_info=”{}”]
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Monthly statistics showing sharp drops in GTA<\/a> home prices don\u2019t tell the full story, Wahi analysis suggests.\u00a0\u00a0<\/span><\/p>\n<\/div>\n

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By Josh Sherman\u00a0<\/span>| 3 minute read<\/p>[\/et_pb_text][et_pb_post_title title=”off” author=”off” date_format=”M j” categories=”off” comments=”off” featured_image=”off” _builder_version=”4.18.0″ _module_preset=”default” custom_margin=”||32px|||” global_colors_info=”{}”][\/et_pb_post_title][et_pb_image src=”@ET-DC@eyJkeW5hbWljIjp0cnVlLCJjb250ZW50IjoicG9zdF9mZWF0dXJlZF9pbWFnZSIsInNldHRpbmdzIjp7fX0=@” align=”center” force_fullwidth=”on” _builder_version=”4.18.0″ _dynamic_attributes=”src” _module_preset=”default” border_radii=”on|32px|32px|32px|32px” global_colors_info=”{}”][\/et_pb_image][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” text_font_size=”1.13rem” text_line_height=”1.75rem” custom_margin=”||2px|||” locked=”off” global_colors_info=”{}”]

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There\u2019s no denying that the Greater Toronto<\/a> Area\u2019s housing market continues to fall from the heights it reached last spring.<\/span><\/p>\n

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Some 2,790 homes changed hands in the GTA in January, down 53% from a year ago, while the average price of $1.05 million fell 17% over the same period.<\/span> Declines like these have been inspiring a flurry of headlines <\/span>describing markets \u201ccrashing\u201d<\/span><\/a> and \u201c<\/span>long-term trouble<\/span><\/a>\u201d since 2022, when a correction took root after the Bank of Canada began hiking interest rates to tackle rising inflation<\/a>.\u00a0<\/span><\/p>\n

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However, Benjy Katchen, CEO of Wahi, a digital real estate<\/a> platform, says it\u2019s critical to take a longer view of the numbers. \u201cI don\u2019t believe the sky is falling,\u201d he says of the GTA\u2019s housing market. \u201cThe full year of 2022 versus the full year of 2021, for all of the GTA \u2014 <\/span>home prices are still up 8%<\/span><\/a>.\u201d<\/span><\/p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.18.0″ _module_preset=”default” background_color=”#edf7f3″ custom_padding=”32px||32px||true|false” locked=”off” global_colors_info=”{}”][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” header_2_text_align=”center” header_2_text_color=”#38505b” header_2_font_size=”2.63rem” header_2_line_height=”3.75rem” max_width=”800px” module_alignment=”center” header_2_font_size_tablet=”32px” header_2_font_size_phone=”27px” header_2_font_size_last_edited=”on|phone” header_2_line_height_tablet=”3.75rem” header_2_line_height_phone=”32px” header_2_line_height_last_edited=”on|phone” global_colors_info=”{}”]

“House prices are not going to collapse \u2014 as long as we keep having a growing and dynamic city with lots of jobs.”<\/strong><\/h2>[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.18.0″ _module_preset=”default” locked=”off” global_colors_info=”{}”][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” text_font_size=”21px” text_line_height=”1.6em” header_2_font=”||||||||” header_2_font_size=”36px” header_2_line_height=”1.3em” header_3_font_size=”1.25rem” header_3_line_height=”1.88rem” header_4_font=”|700|||||||” header_4_font_size=”1.25rem” header_4_line_height=”1.88rem” global_colors_info=”{}”]

Taking a Longer View of GTA Home Price Declines\u00a0\u00a0<\/b><\/h2>\n

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To further illustrate the broader context of falling prices, Wahi\u2019s data team first compared year-over-year price changes for both condos and detached homes in January, excluding municipalities with fewer than 10 transactions. The team identified the three municipalities in each segment that had recorded the largest losses, then looked at where prices stood in these places as far back as January 2020, the month when Toronto\u2019s (and Canada\u2019s) first case of COVID-19 was confirmed. The result? Even in the municipalities that have been hardest hit over the past year, prices overwhelmingly remain far above pre-pandemic levels.<\/p>[\/et_pb_text][et_pb_divider show_divider=”off” admin_label=”Divider” _builder_version=”4.18.0″ _module_preset=”default” height=”40px” locked=”off” global_colors_info=”{}”] [\/et_pb_divider][et_pb_image src=”https:\/\/wahi.com\/wp-content\/uploads\/2023\/02\/wahi-homes-condos-chart-update.png” alt=”GTA home price comparison from January 2020 to January 2023″ title_text=”wahi-homes-condos-chart-update” _builder_version=”4.18.0″ _module_preset=”default” min_height_tablet=”” min_height_phone=”” min_height_last_edited=”on|phone” global_colors_info=”{}”][\/et_pb_image][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” text_font_size=”21px” text_line_height=”1.6em” header_2_font=”||||||||” header_2_font_size=”36px” header_2_line_height=”1.3em” header_3_font_size=”1.25rem” header_3_line_height=”1.88rem” header_4_font=”|700|||||||” header_4_font_size=”1.25rem” header_4_line_height=”1.88rem” global_colors_info=”{}”]

Just look at Whitchurch-Stouffville, where the average selling price of a detached home was $1,268,250. Although that price is down 52% from a year ago \u2014 the biggest drop in the GTA for this housing type \u2014 it remains 14.9% higher than it was at the start of January 2020.<\/span><\/p>\n

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In Caledon<\/a>, detached home prices averaged $1,110,875, an annual decline of 44.9% (but roughly flat from before the pandemic). Meanwhile, with detached homes selling for an average of $1,001,358 last month, Halton Hills<\/a> witnessed an annual decline of 37.3%, still leaving prices up 11.9% over a three-year period. \u201cIf you are in housing for the long game, not the flip, you\u2019re going to be fine,\u201d says Katchen.<\/span><\/p>\n

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More affordably priced GTA houses are persistently attracting attention in an otherwise quiet market. <\/span>\u201cWe\u2019re still seeing bidding wars on houses around a million or slightly less that are priced well,\u201d says Katchen. \u201cThere\u2019s people who want to get their foot on the ladder,\u201d he adds.\u00a0<\/span><\/p>\n

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Homes priced over $1 million don\u2019t qualify for mortgage default insurance, requiring buyers to fork over a 20% downpayment (with insurance, the minimum is 5% for the first $500,000 and 10% on the rest). This, Katchen suggests, has stoked demand from first-time buyers for houses in the $850,000 to $999,999 range.<\/span><\/p>[\/et_pb_text][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” text_font_size=”21px” text_line_height=”1.6em” header_2_font=”||||||||” header_2_font_size=”36px” header_2_line_height=”1.3em” header_3_font_size=”1.25rem” header_3_line_height=”1.88rem” header_4_font=”|700|||||||” header_4_font_size=”1.25rem” header_4_line_height=”1.88rem” global_colors_info=”{}”]

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Condos Remain Resilient\u00a0\u00a0<\/b><\/h2>\n

<\/h3>\n\u201cGenerally speaking, condos have been more resilient,\u201d Katchen explains. This trend is reflected when looking at movements in condo pricing between January 2020 and January 2023.<\/span>\n\nOshawa<\/a> saw condo prices plunge 19.1% over the past year. However, the city\u2019s average condo price in January, which was $480,148, soars 57.6% above pre-pandemic pricing, accounting for the greatest three-year leap in any GTA municipality for this housing segment.\n