Image by: unsplash

New homeowners in Ontario, particularly in cities like Burlington, are facing the harsh reality of declining house prices, as revealed in a recent report by Point2Homes. Burlington stands out as the most severely affected city, with single-family homeowners who purchased at the end of 2022 experiencing an estimated loss of $163 per day over the following year, totaling nearly $60,000. This drop is substantial, considering that the average price for a single-family home in Burlington decreased from $1,260,400 in 2022 to $1,200,817 in 2023. However, Burlington isn't alone in this downturn; several other Ontario cities also witnessed a decline in home values.

Markham, Mississauga, and Kitchener are among the Ontario cities where homeowners faced significant losses in property value. For instance, Markham homeowners lost about $154 per day, equating to $56,043 annually, while those in Mississauga and Kitchener experienced losses of $114 and $109 per day, respectively. This trend is reflected in the report's findings, which indicate that homeowners in 18 cities across Canada saw their single-family homes lose value in the past year, challenging the conventional belief that real estate is always a safe investment.

Condo owners in Ontario had an even more challenging year in 2023, with cities like London and Mississauga experiencing notable declines in condo prices. In Mississauga, condo prices dropped by 5.8%, resulting in a significant decrease in property value for new condo owners. Toronto, while seeing a lesser decline in condo prices at 3.2%, witnessed a slight increase in single-family home prices. Despite early signs of improvement for single-family home prices, the future remains uncertain for condo owners in 2024, emphasizing the long-term nature of real estate investments and the need for a cautious outlook.

Read the full article on: CP24