ONTARIO HOUSING MARKET AS OF APRIL 2024
Ontario’s housing market continues to be a hotbed of activity and interest as the province’s average home price reached its highest level since June 2023. Ontario’s average home price for the month of April 2024 was $900,161, up 1.3% from last month’s price of $889,033 in March 2024. That’s the first time since June 2023 that Ontario’s average home price has been above $900,000.
Ontario’s benchmark home price of $893,200 is also up 1.2% monthly. However, on an annual basis, Ontario’s average home price is down 0.9% year-over-year, while the benchmark home price is down 1.3% year-over-year. There were 17,356 home sales in Ontario during April 2024, a 1.6% year-over-year decrease.
There was quite a strong upswing in active residential listings in Ontario, which increased by 57% year-over-year to 48,858 listings by the end of April 2023 – the highest number of active listings in eight years for the month of April. Meanwhile, there were 38,445 new residential listings, an increase of 42% from April 2023.
The sales-to-new-listings ratio (SNLR) in April 2024 was recorded at 45%. This ratio represents a balanced market, which has an SNLR of between 40% and 60%, and indicates a balanced buyer demand compared to seller supply in the housing market.
GREATER TORONTO AREA (GTA)
The GTA remains one of Ontario’s most dynamic and expensive real estate markets. The average home price in Torontois now over $1.1 million, with the GTA’s average home price at $1,156,167 and the City of Toronto’s average home price at $1,152,200. Suburban areas such as Mississauga and Brampton are experiencing mixed price changes, with Mississauga home prices up 4.6% year-over-year, while Brampton home prices are down 5.7% year-over-year. Over in Oshawa’s housing market, average home prices are down 3% year-over-year.
OTTAWA
Ottawa’s housing market continues to thrive, with the average home price reaching $705,117, up 4% year-over-year. That’s the first time Ottawa’s average home price has risen above $700,000 since May 2022. The city’s robust job market, particularly in the public sector, and high quality of life make it an attractive destination for Ontario homebuyers.
HAMILTON AND NIAGARA
Hamilton and the Niagara region are witnessing a surge in demand, driven by their relative affordability compared to the GTA. The average home price in Hamilton is now $818,381, up 1.4% year-over-year, with Niagara Region trailing behind with a benchmark home price of $644,700, down 1.4% year-over-year. These regions are popular among young families and retirees looking for a balance between urban amenities and a quieter lifestyle.
KITCHENER-WATERLOO AND LONDON
Kitchener-Waterloo and London are two cities that have seen significant growth in the past few years, with their tech sectors attracting young professionals. Theaverage home price in Kitchener-Waterloo Region is now $800,087, up 0.3% year-over-year, while in London’s housing market it is $656,037, down 1.2% year-over-year. These regions are attractive for both first-time buyers and investors.
As of April 2024, the Ontario housing market shows signs of stabilization, but with noteworthy trends that are shaping the landscape:
PRICE TRENDS
The average home price in Ontario has seen moderate growth compared to the rapid increases seen heading up towards the market’s peak back in February 2022. According to the latest Ontario housing market data, the average home price in Ontario is now $900,161, reflecting a year-over-year decrease of 0.9%, while it is up 1.3% monthly. This growth is more sustainable compared to the double-digit increases seen in the past, indicating a cooling but still active market.
INVENTORY LEVELS
One of the critical factors influencing the Ontario housing market is the level of available inventory. As of April 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 looking to capitalize on the favorable market conditions. This can be seen through the decrease in the sales-to-new-listings ratio (SNLR) in most of Ontario’s major cities this month compared to last month, as new listings surge.
INTEREST RATES
Interest rates continue to play a significant role in the Ontario housing market. The Bank of Canada has maintained a steady interest rate since mid-2023, after significantly hiking rates, which had weighed on the market. However, there’s a possibility of an interest rate cut as early as June 2024.