Ontario Real Estate Market

Ontario Housing Market as of October 2024

As of October 2024, the Ontario housing market is seeing inventory levels rise, with some noteworthy trends that are shaping the landscape:

• Greater Toronto Area’s average home price increased by 0.8% year-over-year to $1,135,215
• City of Toronto’s average home price increased by 3.4% year-over-year to $1,165,660
• Ottawa’s average home price increased by 1.2% year-over-year to $668,690
• Mississauga’s average home price decreased by 2.2% year-over-year to $1,081,951
• Brampton’s average home price increased by 2.0% year-over-year to $1,019,645
• Hamilton’s average home price increased by 4.1% year-over-year to $821,512

Ontario Housing Market as of October 2024

Home sales are up sharply in Ontario’s housing market during the month of October 2024, with Ontario home sales up 37% year-over-year off the back of consecutive Bank of Canada rate cuts. Meanwhile, active home listings reached their highest level for the month of October in a decade as sellers flocked in after waiting on the sidelines.

The average Ontario home price for the month of October 2024 was $878,620, up 3.2% from last month’s price of $851,478 in September 2024. This is a 2.6% increase year-over-year from October 2023’s average home price of $855,990. It’s the second month that Ontario’s housing market has seen a positive year-over-year increase in its average home price since March 2024.

Ontario’s benchmark home price of $850,900 is down 0.9% monthly and down 3.0% yearly. The benchmark Ontario home price has decreased every month since April 2024. There were 15,893 home sales in Ontario during October 2024, a 37% year-over-year increase. That’s the third largest year-over-year percentage increase among the provinces this month, beaten only by Newfoundland at 37.5% and PEI at 46%.

There was an upswing in active residential listings in Ontario, which increased by 17% year-over-year to 60,530 listings on the market at the end of October 2024 – the highest number of active listings in a decade for the month of October. Meanwhile, there were 33,313 new residential listings, an increase of 5.3% from October 2023. That’s above the 10-year average for the month of October but below October 2020’s peak.

The sales-to-new-listings ratio (SNLR) in October 2024 was recorded at 48%. This ratio represents a balanced market, which is defined as an SNLR of between 40% to 60%. The SNLR of many of Ontario’s major cities increased sharply this month, with major markets moving from a buyer’s market in September 2024 to a balanced market in October 2024.

The GTA remains one of Ontario’s most dynamic and expensive real estate markets. The average home price in the GTA in October 2024 was $1,135,215, up 0.8% year-over-year and up 2.5% monthly. The City of Toronto’s average home price is $1,165,660, up 3.4% year-over-year and up 4.7% monthly. Suburban areas such as Mississauga and Brampton are experiencing mixed price changes, with Mississauga average home prices down 2.2% year-over-year to $1,081,951. In comparison, the average Brampton home price is up 2.0% year-over-year to $1,019,645, although it is down 1.5% monthly. Over in Oshawa’s housing market, average home prices are down 3.6% year-over-year to $775,011.

Ottawa’s housing market had an average home price of $668,690, up 1.2% year-over-year. That’s after a 2.5% monthly decrease compared to September 2024. Ottawa’s benchmark home price has also increased year-over-year, up 0.4%, to $639,500. 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 $821,512, up 4.1% year-over-year. Niagara North had an average home price of $846,134, up 15.5% year over year, while Burlington saw prices decrease 6.2% year-over-year to $1,078,084. 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 $799,008, up 4.1% year-over-year. In London’s housing market, the average home price is $623,189, down 1.0% year-over-year. These regions are attractive for both first-time buyers and investors.

According to the latest Ontario housing market data for October 2024, the average home price in Ontario is now $878,620, reflecting a 2.6% year-over-year increase. This makes Ontario and BC the most expensive provinces in Canada to buy a house, as these provinces see the smallest year-over-year price gain in Canada’s housing market in October 2024. In fact, BC’s average home price is down 0.2% year-over-year, the only province to see a decrease in its average price compared to last year. 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 October 2024, inventory levels have increased significantly, providing more options for buyers as inventory reaches a decade high for the month of October. The increase in inventory can be attributed to a combination of new housing developments and existing real estate investors who have been waiting on the sidelines, now looking to unload their properties on the market. While sales activity is also up significantly both month-over-month and year-over-year, it still remains 12% below the 10-year average for the month of October.

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