All Dwelling “Composite” Prices Down 28% as Well
According to new data CREA compiled by The Northern Account, the Niagara region has been one of the hardest hit communities in all of Canada, with composite (meaning all housing types) average prices having fallen 28% since the peak in March 2022.
Niagara Region Single family homes have been particularly hard hit, with average prices down a whopping 31% since March 2022.
These prices are “actual” and not “seasonal”, and so they represent the real, unadjusted, HPI price points:
Not Just Theoretical Losses — People are Experiencing This
For some, these aren’t just abstract paper losses.
Single family detached homes in Niagara region are selling for significantly less than they were purchased for at the housing peak in Canada in 2022.
In one transaction, a home in Niagara was purchased in May of 2022 for $795,000, $175,000 over asking price. (Bidding significantly over asking wasn’t uncommon in early 2022 as peak FOMO kicked into high gear. This was also right before interest rates were increased 10 times by the Bank of Canada)
Sold for a $230,000 Loss
This home was put up for sale a few months after purchase — and after 6 price reductions over the course of a full year, it finally sold in April 2024 for a 30% loss, at $565,000.
Anyone who Purchased Before March 2021 is Still Likely In the Money
The news isn’t all bad — because the run up to the March 2022 peak prices was so rapid and unprecedented, there is only a small subset of homeowners who may be underwater. (Have a look at the chart at the beginning of this article to better visualize the price action.)
Specifically, anyone who purchased between January and July 2022 are at the highest risk, according to CREA HPI data.
Similarly, anyone who purchased before March 2021 is likely still in capital gains territory.
And, of course, it goes without saying that a homeowner can only realize a loss if they are forced to sell. A homeowner who chooses to live in a home for 20 years can simply tune out the noise, live their lives, and pay off their mortgage.
