Drop in house prices good sign for housing market headed into the fall in Brampton

With home sales across Ontario slowing during the “summer stall,” a drop in prices in Brampton could mean good news for potential buyers next season.

There were some 5,250 homes sold across the GTA last month – a nearly 8 per cent increase compared to the same time last year, but a drop of nearly 30 per cent from the 7,481 home sales in June according to real estate website Zoocasa.

Detached homes in Brampton saw a sharp drop in month-over-month sales in July with just 190 properties changing hands – a decrease of 40.25 pre cent from June. But the price of detached homes also came down more than 5 per cent to $1,052,059.

That drop in home prices in Brampton is due to an increase in borrowing costs and a decrease in market demand, as the average price of each property type except for condo apartments dropped across the GTA last month.

Coupled with a decline in sales, Brampton’s supply of available properties has had a chance to rebuild, which “will likely position this in-demand market favourably for the fall.”

Despite less than favourable conditions and low stock for buyers in some cities, almost all major Canadian markets have seen a spike in sales since January.

There were just 64 sales of semi-detached Brampton properties in July, down some 37 per cent from June. But unlike detached homes, there were fewer new listings of semi-detached properties – meaning buyers who have had their eye on a detached property type in Brampton might see some more competition for the few options available.

“We often see activity begin to slow this time of year in the 416 and 905 alike as Canadians may choose to pause their real estate plans to soak up the summer sun,” the report reads. “Although the summer stall is upon us, appetite is still strong for stand-out properties that are priced right.”