Property price calculator: How would a correction affect your sale price?

How would a correction affect the value of your home?

Bulletin for homeowners: Home prices may fall. It’s happened before and, after years of steep price increases, it could happen again.

See what a downturn could look like for you over the next five years using our housing correction calculator. You can also use the calculator to check what five more years of prize money would look like. Market figures date back to 1980 on an average national basis and for five major city markets across the country. The figures presented here do not reflect the impact of inflation.

Point: Use the buttons above the table to adjust the correction.

Is a big correction realistic?

Here we see average house prices for different major housing markets dating back to 1980. Scroll through these cities to see the most significant corrections that have occurred in recent decades. You can also see what a severe correction of 25% would look like.

The biggest correction in Toronto occurred between 1989 and 1995, when house prices fell 23%. This decline follows a period of rampant price speculation in the Toronto market. The Vancouver market has been very volatile over the years – significant gains, but also notable declines. The Calgary market depends to a large extent on the health of the energy sector. You can see the struggles of the energy industry of the early 1980s reflected in the housing market crash of that period.

Planned correction of -25%

How do mortgage rates affect the housing market?

Note how the great housing market run since the mid-1990s coincides with a long decline in mortgage rates. There is little room for mortgage rates to fall further in the coming years; a slow and steady increase in rates is much more likely. Here are the five-year posted mortgage rates as tracked by the Bank of Canada.

Five-year average mortgage rate

Average house price in Canada

Eleanor C. William