August 14, 2025 | Real Estate Downturn Picking up Steam

If we had a dime for all the times people say silly things, like “You’ll never lose money in real estate” or “high-end properties always hold their value.” Not true, never has been.

The current real estate correction cycle is well-earned after years of easy money speculation and uneconomically high prices. Three years into the downturn, many people are still in denial. But the mean reversion process is happening, and it packs a big financial hit for owners, lenders, the broader economy and jobs.  See, Cottage purchased for $1.9M sells at a 45% loss in Ontario:

An Ontario cottage purchased for $1.9 million in 2022 just sold for a huge loss.

As housing prices decline across Canada, homes continue to sell for much less than homeowners paid just a few years ago.

In Brampton, a home recently sold for a $469,000 loss, and a Mississauga home sold for a $700,000 loss in July.

In a tough market, recreational properties are not a priority for many buyers. A recent report found steep price declines in recreational markets across the province on a year-by-year basis, with areas like Niagara-on-the-Lake, Peterborough County, Northwestern Ontario, Orillia, and Grand Bend being hit the hardest.

Danielle Park August 14th, 2025

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