Historically low interest rates cushioned the blow of tight inventory during the pandemic. As a result, activity increased and demand for homes was high, which led to homes selling seemingly overnight, keeping prices high. Today, interest rates have increased ten times since March of last year. This has caused prices to fluctuate slightly, although, on a national level, they were up again in August 2023.
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So if you did buy during the pandemic, how much is your home worth now? To find out, Zoocasa analyzed home prices from August 2020, 2021 and 2022 and compared them to the national price of a home in 2023 as well as major cities across the country in an effort to see how much they’ve changed.
Homes Purchased in Toronto in 2020 Have Increased the Most in Value
Pandemic buyers that purchased their homes in the early days of 2020 likely have the greatest appreciation in the value of their homes. Nationally, the price of a home has increased by $179,100 in that three-year period, while it’s only gone up by $51,200 since 2021 and just $2,900 in the last year. The national benchmark price of a home is now $750,100, according to the Canadian Real Estate Association.
The value of homes purchased in 2020 in Toronto has increased most notably, climbing $280,700 on average in the last three years. The average home price breached the $1,000,000 price mark in April 2021 and has continued climbing ever since, now sitting at $1,141,400. For 2021 home buyers, the average price has increased by $118,600. While significantly lower than the three-year price difference, it is still the greatest two-year price increase of any city included in this analysis. The city with the second highest price growth since both 2020 and 2021 was unsurprisingly Vancouver, with a three-year price difference of $261,800 and a two-year price difference of $111,400.
Aside from Toronto and Vancouver, Halifax-Dartmouth is the other stand-out city where pandemic buyers cashed in big. 2022 buyers in Halifax-Dartmouth will have experienced a greater increase in the value of their home in just one year than buyers in any other city. Home prices have grown over the last year by $46,200 to an average of $530,900. That’s $16,500 more than home prices grew in Vancouver and $18,700 more than in Toronto. The value of a home in the city has increased from $484,700 to $530,900.
Despite a $218,500 increase in home price since 2020, the home price in Victoria has fallen since 2022. Buyers who bought last year will likely still see healthy appreciation over time, however, with high interest rates tightening the pool of motivated buyers. Home prices have dropped in the city by $18,400, from $906,400 to $888,000. It’s not the only city where 2022 buyers are currently down, as home values have also fallen in Barrie and District, Edmonton and Winnipeg by $5,200, $14,800 and $300 respectively.
Regina is the only city where home prices have decreased in 2021 and 2022, with the average price declining by $1,100 in 2021 and 2022 buyers $10,100. However, if 2021 buyers sold last year, they likely would have experienced some modest increase in value as the average price increased by $9,000, but the home price has since dropped to $313,100.
If you’re looking to find an affordable home this fall, give us a call! We can answer any questions you have about your local market and help you navigate the home-buying process.
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Daniel Crook is a Content Marketing Specialist at Zoocasa. Daniel’s insights provide home buyers and sellers with knowledge of local and national markets to aid them in their real estate pursuits. Daniel covers a multitude of topics, ranging from mortgages to local market trends, as well as data-driven reports uncovering national trends.
His work has been featured in outlets such as BNN Bloomberg, CTV News, the National Post and the Globe and Mail. You can find all his latest insights on the Zoocasa blog.