If Toronto’s housing market did unravel, how far might prices fall? How long would the pain last and what would a recovery look like?
Tough questions only answered in hindsight because each housing correction has a life of its own. In the early 1990s as a new homebuyer, I watched the value of my house fall by about 15 per cent over two years. For another two, prices bumped along the bottom. Once economic recovery took hold, housing took off and hasn’t stopped since.
Even though GTA house prices have been predicted to fall in each of the past 10 years, they keep hitting new highs. The average price of a home in the GTA rose 7.5 per cent in January, year over year, bringing the average to $552,575.
Tough questions only answered in hindsight because each housing correction has a life of its own. In the early 1990s as a new homebuyer, I watched the value of my house fall by about 15 per cent over two years. For another two, prices bumped along the bottom. Once economic recovery took hold, housing took off and hasn’t stopped since.
Even though GTA house prices have been predicted to fall in each of the past 10 years, they keep hitting new highs. The average price of a home in the GTA rose 7.5 per cent in January, year over year, bringing the average to $552,575.
