Ontario Real Estate Market

Ontario Housing Market as of July 2024

• Average home prices in Ontario decreased by 2% year-over-year to reach $837,685
• Greater Toronto Area’s average home price decreased by 1.1% year-over-year to $1,106,617
• City of Toronto’s average home price increased by 2.0% year-over-year to $1,087,436
• Ottawa’s average home price remained the same year-over-year, at $679,610
• Mississauga’s average home price decreased by 1.4% year-over-year to $1,042,868
• Brampton’s average home price decreased by 4.0% year-over-year to $1,010,044
• Hamilton’s average home price decreased by 7.2% year-over-year to $785,97

Rising inventory and declining home prices are the hallmarks of Ontario’s housing market in July 2024 as active home listings reach their highest level for the month of July in more than 5 years. The average Ontario home price for the month of July 2024 was $837,685, down 5.3% from last month’s price of $884,761 in June 2024. That’s the largest monthly decline in home prices out of all provinces this month.

This also marks a 2.2% decrease year-over-year from July 2023’s average home price of $856,269. Ontario’s benchmark home price of $877,300 is also down 0.9% monthly and down 4.5% yearly. There were 14,858 home sales in Ontario during July 2024, a slight 2.9% year-over-year increase.

There was quite a strong upswing in active residential listings in Ontario, which increased by 42% year-over-year to 62,940 listings by the end of July 2024 – the highest number of active listings in over five years for the month of July. Meanwhile, there were 37,198 new residential listings, an increase of 15% from July 2023.

The sales-to-new-listings ratio (SNLR) in July 2024 was recorded at 39.9%. This ratio represents a buyer’s market with an SNLR of less than 40% and indicates a lower buyer demand compared to seller supply in the housing market.

The GTA remains one of Ontario’s most dynamic and expensive real estate markets. The average home price in the GTA in July 2024 was $1,106,617, down 1.1% year-over-year, and the City of Toronto’s average home price at $1,087,436, up 2% year-over-year. Suburban areas such as Mississauga and Brampton are experiencing mixed price changes, with Mississauga home prices down 1.4% year-over-year to $1,042,868. In comparison, Brampton home prices are down 4.0% year-over-year to $1,010,044. Over in Oshawa’s housing market, average home prices are down 6.4% year-over-year to $776,241.

Ottawa’s housing market had an average home price of $679,610, down 0.4% year-over-year. While the average Ottawa home price has decreased year-over-year, its benchmark home price is still 0.1% higher year-over-year. Ottawa’s benchmark home price has also gained 0.2% monthly, compared to its average price, which has declined by 1% monthly. Ottawa’s robust job market, particularly in the public sector, and high quality of life make it an attractive destination for Ontario homebuyers.

The average home price in Hamilton is now $785,971, down 7.2% year-over-year. Niagara North had an average home price of $856,345, up 4.8% year over year, while Burlington saw prices decline 5.4% year-over-year to $1,091,186. These regions are popular among young families and retirees looking for a balance between urban amenities and a quieter lifestyle.

Kitchener-Waterloo and London have seen significant growth in the past few years, with their tech sectors attracting young professionals, although home price growth and sales activity are slowing. The average home price in the Kitchener-Waterloo Region is now $782,716, down 1.6% year-over-year. In London’s housing market, the average home price is $654,593, down 2.1% year-over-year. These regions are attractive for both first-time buyers and investors

According to the latest Ontario housing market data, the average home price in Ontario is now $837,685, reflecting a 2.2% year-over-year decrease. This makes Ontario, BC, and PEI the only provinces in Canada’s housing market to experience a year-over-year decline in average prices in July 2024. Average home prices in all other provinces are still up yearly. This stagnation is because Ontario home prices have risen by close to 100% over the past ten years and are now out of reach for many Ontario wage earners.

One of the critical factors influencing the Ontario housing market is the level of available inventory. As of July 2024, inventory levels have increased significantly, providing more options for buyers. The increase in inventory can be attributed to a combination of new housing developments and existing homeowners who have been waiting on the sidelines, now looking to unload their properties on the market. This can be seen through the decrease in the sales-to-new-listings ratio (SNLR) in many of Ontario’s major cities this month compared to last month, as new listings surge.

Interest rates continue to play a significant role in the Ontario housing market. The Bank of Canada had maintained a steady policy interest rate between mid-2023 and June 2024 after significantly hiking rates, which had weighed on the market. However, interest rate cuts in June 2024 and July 2024, as well as the possibility of future rate cuts this year, may help to improve market conditions in Ontario’s housing market in the coming months.