Posthaste: Buyer's remorse? Homeowners in these cities are counting their losses
Safe as houses, they say — just not so much lately.
Many homebuyers who took the plunge a year ago have watched the value of their property tick lower through 2023.
Not all, mind you. A comparison of home prices in 67 cities in Canada between December 2022 and 2023 done by Canadian real estate site Point2 revealed that owners of single-family homes in 18 cities and condo owners in 26 cities have seen their homes lose value this past year.
“Last year showed that a real estate investment can sometimes backfire,” said the Point2 report. “This means Canada’s newest owners from these unlucky cities might have to wait more than others to build wealth.”
Predictably, prices have dropped the most in regions that saw crazy gains during the pandemic housing boom.
Topping the losses is Burlington, Ontario. Anyone who bought a single-family home here at the end of 2022 lost $163 a day for the next year, stripping almost $60,000 off what they paid for it, said the report.
Owners in Kitchener, Mississauga, and Markham also took a hit, losing $39,850, $41,740 and $56,043, respectively, off the value of their home over the year.
“Percentage-wise, the decreases in home prices in these cities might seem benign, coming close to a meagre 5 per cent,” said the report. “But, that percentage drop translates to a more hard-hitting net amount, especially considering the tough market conditions during which these owners took the plunge.”
Condo owners in many cities are worse off than single-family homeowners.
“With 26 markets seeing year-over-year price drops for condos, the price correction for this segment is even more generalized,” said the report. “What is considered the more affordable housing option got progressively cheaper, putting condo
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