Source From: Nesto
Written by Samson Solomon, Aug 16, 2024
Ontario Market Report Summary
The average selling price of a home in Ontario decreased by 4.5% year-over-year to $877,300 in July 2024.
The average selling price of a single-family home in Ontario decreased by 4.2% year-over-year to $964,400 in July 2024.
The average selling price of a townhouse/multiplex in Ontario decreased by 4.0% year-over-year to $701,400 in July 2024.
The average selling price of a condo in Ontario decreased by 4.8% year-over-year to $614,800 in July 2024.
The average rent in Ontario decreased by 1.0% year-over-year to $2,396 for July 2024.
Composite Home Prices
The average selling price of a home in Ontario was $877,300 for the month of July 2024, that’s decreased by 0.9% compared to the previous month. On a year-over-year basis, Ontario home prices have decreased 4.5% over the last 12 months.
Single-family Home Prices
The average selling price of a single-family home in Ontario was $964,400 for the month of July 2024, that’s decreased by 0.9% compared to the previous month. On a year-over-year basis, single-family home prices in Ontario have decreased by 4.2% over the last 12 months.
Townhouse and Multiplex Prices
The average selling price of a townhouse in Ontario was $701,400 for the month of July 2024, that’s decreased by 1.1% compared to the previous month. On a year-over-year basis, the price of a townhouse in Ontario has decreased by 4.0% over the last 12 months.
Condo Prices
The average selling price of a condo in Ontario was $614,800 for the month of July 2024, that’s decreased by 0.5% compared to the previous month. On a year-over-year basis, the price of a condo in Ontario has decreased 4.8% over the last 12 months.
Ontario Housing Market Summary
Data from the Ontario Real Estate Association (OREA) indicates that the average price of resale residential homes sold across Ontario in July 2024 was $877,300, and it decreased of 4.5% compared to a year ago.
OREA indicates also reported a sales-to-new-listings ratio (SNLR) of 40%, indicating a buyers market in Ontario for July 2024.
According to the Ontario Real Estate Association (OREA), Ontario’s housing market witnessed a slight increase in residential sales in July 2024, rising 2.9% from the previous year. However, this growth remains below historical averages, indicating a market adjusting to recent economic changes. The average resale price dipped slightly to $837,685, reflecting a modest year-over-year decrease.
New listings in Ontario surged to a record high in July, signalling a growing supply of available homes. Active listings are also at their highest point in over five years. This increase in inventory is shifting the market towards a more balanced state, offering buyers more choices and potentially easing price pressures.
The easing sales-to-new-listings ratio and rising months of inventory suggest a gradual shift towards a buyer’s market. While this trend might cause some concern for sellers, experts believe declining interest rates will likely stimulate demand in the coming months, potentially leading to a market rebound.
The Greater Toronto Area (GTA) experienced a dip in sales, accompanied by a significant rise in new listings, further tilting the scales towards a buyer’s market. However, other regions like Ottawa demonstrate resilience with year-over-year price increases, driven by strong local economies and desirable living conditions.
Recent interest rate cuts by the Bank of Canada are expected to play a pivotal role in shaping the future of Ontario’s housing market. Lower borrowing costs could spark renewed buyer interest and contribute to a market rebound. However, affordability remains a concern, and the full impact of these rate cuts on the market is yet to be seen.
Ontario’s housing market is navigating a complex landscape marked by slowing sales, rising inventory, and mixed regional performance. While challenges persist, the potential for a market rebound is on the horizon, fueled by anticipated rate cuts and pent-up demand. The market remains sensitive to economic changes, and its future trajectory will largely depend on factors such as interest rates, inventory levels, and overall economic conditions.
Month-over-Month Expectations for Ontario’s Housing Market
Transactions – Number of Sales
The number of sales in Ontario was 14,858 during July 2024, that’s decreased by 7.5% compared to the previous month. On a year-over-year basis, sales in Ontario have increased by 5.5% over the last 12 months.
New Listings
The number of new listings in Ontario was 37,198 during July 2024, that’s decreased by 5.0% compared to the previous month. On a year-over-year basis, new listings in Ontario have increased by 18.5% over the last 12 months.
Real Estate Market
The sales to new listings ratio (SNLR) in Ontario was 40% during July 2024, indicating a buyers market. On a monthly basis, that’s decreased by 2.6% compared to the previous month. Ontario’s yearly sales to new listings ratio has decreased by 11.0% over the last 12 months.
The sales to new listings ratio (SNLR) measures the number of home sales compared to new listings. An SNLR under 40% suggests a buyer’s market in which buyers have the upper hand and more negotiating power. An SNLR between 40% and 60% is a balanced market, while an SNLR of over 60% is considered a seller’s market.
Annual Changes to Regional Composite Home Prices in Ontario
Annual Changes to the Composite Home Price in Ontario
Ontario Market Rents Summary
The average rent in Ontario was $2,396 for the month of July 2024, which decreased by 1.0% on a year-over-year basis.
The average rent for a bachelor apartment in Ontario was $1,828 for the month of July 2024, which increased by 2.0% on a year-over-year basis.
The average rent for a 1-bedroom apartment in Ontario was $2,189 for the month of July 2024, which decreased by 3.0% on a year-over-year basis.
The average rent for a 2-bedroom apartment in Ontario was $2,638 for the month of July 2024, which decreased by 3.0% on a year-over-year basis.
The average rent for a 3-bedroom apartment in Ontario was $2,189 for the month of July 2024, which decreased by 3.0% on a year-over-year basis.
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