Flooding Causes Short-term Dip in House Prices, Longer Selling Times

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Any homeowner wading shin-deep among their ruined possessions and half-drowned storage boxes knows that flooding has become a real concern in Canadian cities over the past decade.

It’s not only a hassle to clean up, costing an average of $43,000 in damages, but there’s now hard data showing it also has a short-term impact on home prices.

Over the past eight years, catastrophic flooding caused an average 8.2% drop in the final sale price of affected homes. It also caused them to languish on the market around 20% longer in the six-month period post-flooding, says a new report from the Intact Centre on Climate Adaptation from the University of Waterloo.

The study focuses on five cities that experienced severe flooding between 2009 and 2020: Burlington, Toronto and Ottawa in Ontario; Gatineau, Quebec; and Grand Forks, British Columbia.

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Original Article Source Credits: CANADIAN MORTGAGE TRENDS, https://www.canadianmortgagetrends.com

Article Written By: Danielle Kubes

Original Article Posted on: February 16, 2022

Link to Original Article: https://www.canadianmortgagetrends.com/2022/02/flooding-causes-short-term-dip-in-house-prices-longer-selling-times