This is What a Housing Correction Looks Like

The Greater Toronto Area’s housing market is in the incipient stage of a price correction — one that, it could be argued, is long overdue — but the recent drop in home values could be more dramatic in some areas than others, prompting fears of an outright crash.

“If we look at the pre-pandemic [activity] until now, those outer 905 markets saw 10 years of price growth in two years. What had been happening was unsustainable, and we’re all well aware of that, so a 20-30% crash from this past February’s peak is totally possible,” Royal LePage Signature Realty broker and team lead Tom Storey said.