Ontario Housing Market as of May 2024
- Ontario’s benchmark home price was $890,600, down 3.3% year-over-year.
- Average home prices in Ontario decreased by 3.7% year-over-year to reach $890,634
- Greater Toronto Area’s average home price decreased by 2.5% year-over-year to $1,165,691
- City of Toronto’s average home price remained the same year-over-year, at $1,193,202
- Ottawa’s average home price increased by 2.5% year-over-year to $690,683.
- Mississauga’s average home price decreased by 3.9% year-over-year to $1,096,142
- Brampton’s average home price decreased by 9.8% year-over-year to $1,002,608
- Hamilton’s average home price remained the same year-over-year, at $817,28
Home prices in Ontario’s housing market dipped slightly in May 2024 as sales fell and inventory mounted. The average home price for the month of May 2024 was $890,634, down 1.1% from last month’s price of $900,161 in April 2024. This marks a 3.7% decrease year-over-year from May 2023’s average home price of $924,908. Ontario’s benchmark home price of $890,600 is also down 0.25% monthly and 3.3% year-over-year. There were 17,871 home sales in Ontario during May 2024, a 16.3% year-over-year decrease.There was quite a strong upswing in active residential listings in Ontario, which increased by 64% year-over-year to 58,156 listings by the end of May 2023 – the highest number of active listings in nine years for the month of May since 2015. Meanwhile, there were 43,467 new residential listings, an increase of 19% from May 2023.
The sales-to-new-listings ratio (SNLR) in May 2024 was recorded at 41%. This ratio represents a balanced market with 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 Toronto in May 2024 is now the highest it has been since June 2023, with the GTA’s average home price at $1,165,691 and the City of Toronto’s average home price at $1,193,202. Suburban areas such as Mississauga and Brampton are experiencing mixed price changes, with Mississauga home prices down 3.9% year-over-year to $1,096,142. In comparison, Brampton home prices are down a more significant 9.8% year-over-year to $1,002,608. Over in Oshawa’s housing market, average home prices are down 5% year-over-year to $813,004.
Ottawa
Ottawa’s housing market continues to tread above water, with the average home price reaching $690,683, up 2.5% year-over-year. Last month was the first time Ottawa’s average home price had risen above $700,000 since May 2022. While the average Ottawa home price is below $700,000, it’s still up year-over-year, which isn’t the case in the Greater Toronto Area. Ottawa’s robust job market, particularly in the public sector, and high quality of life make it an attractive destination forOntario homebuyers.
Hamilton and Niagara
The average home price in Hamilton is now $817,283, up 0.4% year over year. Niagara Region trails behind with a benchmark home price of $653,900, down 1.5% 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 have seen significant growth in the past few years, with their tech sectors attracting young professionals. The average home price in the Kitchener-Waterloo Region is now $818,507, the highest it has been since June 2023, but down 0.4% year-over-year. In London’s housing market, the average home price is $660,430, down 3.2% year-over-year. These regions are attractive for both first-time buyers and investors
Price Trends
The average home price in Ontario has seen moderate growth compared to the rapid increases heading towards the market’s peak in February 2022. According to the latest Ontario housing market data, the average home price in Ontario is now $890,634, reflecting a year-over-year decrease of 3.7%, while it is down 1.1% monthly. This makes Ontario and BC the only provinces in Canada’s housing market to experience a year-over-year decline in average prices in May 2024.
Inventory Levels
One of the critical factors influencing the Ontario housing market is the level of available inventory. As of May 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 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, an interest rate cut in June 2024 and the possibility of future rate cuts this year may help to improve market conditions in the coming months
The MLS® Home Price Index Composite benchmark was down by 3.5 per cent on a year-over-year basis in May 2024. The average selling price of $1,165,691 was down by 2.5 per cent over the May 2023 result of $1,195,409. On a seasonally adjusted monthly basis, the average selling price edged up slightly compared to April 2024.
“While interest rates remained high in May, home buyers did continue to benefit from slightly lower selling prices compared to last year. We have seen selling prices adjust to mitigate the impact of higher mortgage rates. Affordability is expected to improve further as borrowing costs trend lower. However, as demand picks up, we will likely see renewed upward pressure on home prices as competition between buyers increases,” said TRREB Chief Market Analyst Jason Mercer.
“In order to have an affordable and livable region over the long term, we need to see a coordinated effort from all levels of government to alleviate our current housing deficit and to provide housing for new population moving forward. On top of this, governments need to ensure the delivery of infrastructure to support our growing population. The economic health and liveability of our region depends on the timely completion of public transit projects including better transparency and clear timelines on the completion of the Eglinton Crosstown LRT,” said TRREB CEO John DiMichele.