Brampton detached home prices dropped by nearly $60,000 this summer
Published August 9, 2022 at 7:32 pm
Family homes saw a big drop in prices this summer in Brampton.
While it will still cost around $1 million to buy a typical detached home in Brampton, the latest numbers are showing price declines this summer.
The biggest drop is in the benchmark price for a single family detached home. A benchmark price is defined as a typical home in a community, based on the most popular combination of features.
In Brampton, the July 2022 benchmark price for a single family detached home was $1,279,400, according to the Toronto Regional Real Estate Board (TRREB) July report. That’s a drop of $59,600 from June’s the benchmark price of $1,339,000. Brampton’s price decline is a little less than Mississauga’s over $70,000 drop.
It’s important to note that prices are still up year over year in Brampton — 14.78 per cent compared to this time last year.
But experts say real estate prices are trending downward.
“In the Toronto and Vancouver areas, the decline in activity is quickly becoming one of the deepest of the past half a century,” the RBC August housing report notes. “Prices are sliding fast, and the exuberance that permeated these markets earlier this year is being replaced by fear.”
Why are prices dropping?
RBC blames soaring interest rates. Higher borrowing costs have pushed many buyers to the sidelines and reduced the budget of others.
That may be why condo prices see a lower decrease in price as home buyers look for housing in their budget.
In July, the benchmark apartment price was $624,400 in Brampton, down from $670,300 in June.
Similarly, townhouses dropped just slightly from $828,400 in June to $803,500 in July.
More homes are needed to meet demands.
“Many GTA households intend on purchasing a home in the future, but there is currently uncertainty about where the market is headed,” said TRREB Chief Market Analyst Jason Mercer.insauga's Editorial Standards and Policies advertising