After an epic 30-year run in housing prices in the Greater Toronto Area (GTA)—interrupted by only a handful of sharp but quick declines—the bear is back. In some GTA suburbs, Toronto housing crash has shaved over one-third of value off of average home prices the first two quarters of 2022 for some communities, as the bidding wars of 2021 fade into memory. While a select few areas have actually seen increases so far this year, it’s the drops which are attracting the most attention as consumer sentiment turns hawkish.
According to the Toronto Real Estate Board, average real estate prices have fallen sharply in several GTA cities and towns since hitting a peak in February. In the nearby township of King, Ontario, located 56.5 km north of Toronto, prices have dropped a whopping 36% on average. King City is the largest community in King township, with 2,730 dwellings and a population of 8,396 as of the 2021 Canadian census.
Meanwhile, price drops in additional communities continues apace. Although King City is an obvious outlier in the dataset, several experienced rapid drops in average price among all-dwelling residences. Four experienced price declines of at least twenty percent, paced by Scugog which fell 26.4%. Oshawa finished near the top of the list, plunging 23.2%. Earlier this year, this Oshawa home trended on Twitter after having sold for nearly triple what it has listed for two years ago—a full $400,000 above asking! For a few days anyway, it became Canada’s newest Exhibit ‘A’ example of the pervasive bubble conditions which had dominated the market since the COVID bottom.