New condo owners face a $36K loss in value in Mississauga: report
Published February 6, 2024 at 12:22 pm
People who bought a condo about one year ago in Mississauga may find the value significantly down.
Buyers may be regretting the decision to purchase a property in 2022, according to a report from Point2Homes.
Point2Homes suggests people who purchased a home at the end of 2022 may have seen the value decline throughout 2023 in Ontario.
“With issues like inflation, the rapidly rising cost of living, and historically high mortgage rates, both homebuyers and sellers had a very challenging 2023,” the report notes.
The Bank of Canada raised interest rates, starting in March 2022 to five per cent in July of 2023. The interest rate hikes were meant to curb inflation including high costs of housing.
The rate increase also meant that mortgage rates went up.
So, as expected, housing prices went down.
The report from Point2Homes outlines where housing prices decreased the most and by how much.
The year-over-year changes in home prices in the 67 largest cities in Canada show that owners of single-family homes in 18 cities and condo owners in 26 cities have seen their homes lose value in the last year, the report notes.
“Falling home prices may make many new owners regret their decision to finally take the plunge and buy a home a year before, when prices were still at all-time highs,” the report notes.
Looking at single-family home prices, Mississauga saw one of the biggest declines year-over-year from $1,338,112 in 2022 to $1,296,372 in 2023, according to the report.
This meant a -3.1 per cent change and a decline of $41,740.
But it appears Burlington saw a bigger price drop in Ontario.
But Mississauga condo buyers saw one of the biggest changes in Canada.
Average condo prices dropped $36,600 from $635,600 in 2022 to $599,000 in 2023.
While the loss may seem significant, it is important to note the market fluctuates and the change won’t impact people who plan to stay in their home for several years. And of course, price declines are good news for new home buyers.
Point2Homes also suggests there are signs that home prices are stabilizing, particularly for single-family homes.
See the full report from Point2Homes here.
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