Burlington house prices expected to drop this fall as market continues to cool
Published September 28, 2022 at 12:09 pm
After record increases the last 20 months, the Burlington real estate market is forecast to cool off significantly this fall.
Comparing the first eight months of 2022 to the same time period in 2021, the average sale price in Burlington went from $1.04M to S1.26M, an increase of 21.5 per cent. A lack of supply was one of the main drivers of the increase, as the number of transactions dropped from 1,730 to 1,317, a decrease of 23.9 per cent.
However, the 2022 Fall Canadian Housing Market Outlook Report from Re/Max Realty sees the market taking a downturn.
Experts predict prices will drop five per cent before the end of the year and the number of posting will drop four per cent.
“This market moderation comes on the heels of rising interest rates, record-high inflation and broader global and economic uncertainties that have impacted consumer confidence and market activity,” said the report.
“Re/Max brokers and agents expect a decline in sales this fall in 24 out of 30 markets surveyed.”
Across the country, the report anticipates prices will drop by 2.2 per cent. That will be fueled by rising interest rates and worries of an impending recession.
“Despite the fact that nearly half of Canadians are waiting to buy or sell a home, we’re confident that, as economic conditions improve by mid-2023, activity will resume,” said Elton Ash, executive vice president, Re/Max Canada.
“Timing the market for short-term investment is extremely difficult and rarely successful. But as a long-term investment, the Canadian housing market continues to yield solid returns.”insauga's Editorial Standards and Policies advertising advertising