showing signs of stabilization<\/a>, the April average home price of $903,992 represents a 4 percent drop from two years prior.<\/p>\nAnother takeaway: in two-thirds of the markets, most of which are defined by municipal borders, prices were lower in April 2019 than in April 2017.<\/p>\n
The greatest declines were in Newmarket and Aurora: both York Region municipalities have been prices collapse 30 percent over two years, with Newmarket\u2019s April average settling at $725,710 compared to Aurora\u2019s $888,387.<\/p>\n
In fact, the five biggest drops were all in York Region, an area bordering Toronto to the north that had been a hotbed for foreign investment before the Liberals slapped a 15-percent levy on non-residents purchasing residential property.<\/p>\n
\u201cThe numbers reveal some municipalities \u2014 especially those in higher-priced York Region \u2014 have sustained steep declines in prices and considerable change in buying conditions over the two-year period,\u201d writes Penelope Graham, Zoocasa\u2019s managing editor.<\/p>\n
From April 2017 to April 2019 prices increased in nine local markets, led by the Windsor\u2013Essex region. Prices in Windsor\u2014Essex have soared 25 percent in two years, surpassing the next-hottest market of London, which has experienced price growth of 19 percent through the same period.<\/p>\n
Affordable markets tended to fare better in the wake of the Fair Housing Plan\u2019s introduction. None of the nine markets to see growth had an average price crack the $600,000 market as of last month. In fact, Barrie was the most expensive market, but its average price was only $563,527, having risen 7 percent in two years<\/p>\n
Of course, the dampened home price trends also reflect national policy measures to an extent. In January 2018, for instance, federal policymakers expanded stress testing to uninsured mortgages.<\/p>\n
The change meant that even with a downpayment of 20 percent, a borrower would need to prove they could afford to keep up with monthly mortgage payments 200 basis points higher than what they were being offered by their lender to qualify.<\/p>\n
Suddenly, a contract for a 3 percent interest rate required uninsured mortgage borrowers who could afford 5 percent. Stress testing already existed for insured mortgages, which are those in which a homebuyer has a downpayment of less than 20 percent.<\/p>\n
\u201cIt effectively reduced purchasing power for home buyers and contributed to chilling sales at all levels of the market,\u201d says Graham of the measure.<\/p>\n
Scroll down to see how prices have evolved throughout the province since Ontario stepped in to cool markets:<\/p>\n
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