Ontario Housing Market Oct 28/24
Ontario Housing Market as of September 2024
Average home prices in Ontario’s housing market experienced an upswing in September 2024 as it tried to rally off the back of consecutive Bank of Canada rate cuts in June, July, and September 2024. Meanwhile, both new home listings and active home listings reached their highest level for the month of September in more than five years as sellers flocked in after waiting on the sidelines.
The average Ontario home price for the month of September 2024 was $851,478, up 4.1% from last month’s price of $817,915 in August 2024. That’s the largest monthly increase in home prices out of all provinces this month. This also marks a 0.2% increase year-over-year from September 2023's average home price of $849,516. Ontario’s housing market hasn’t seen a positive year-over-year increase in its average home price since March 2024.
Ontario’s benchmark home price of $858,500 is down 1.0% monthly and down 4.0% yearly. There were 13,251 home sales in Ontario during September 2024, a 9.8% year-over-year increase.
There was a strong upswing in active residential listings in Ontario, which increased by 25.6% year-over-year to 64,503 listings by the end of September 2024 – the highest number of active listings in over five years for the month of September. Meanwhile, there were 38,820 new residential listings, an increase of 7.8% from September 2023. That’s also the highest number of new listings in September ever.
The sales-to-new-listings ratio (SNLR) in September 2024 was recorded at 34%. This ratio represents a buyer’s market, which is defined as an SNLR of below 40%. The SNLR of many of Ontario’s major cities fell sharply this month.
Key Points
As of September 2024, the Ontario housing market is seeing inventory levels rise, with some noteworthy trends that are shaping the landscape:
Price Trends
According to the latest Ontario housing market data, the average home price in Ontario is now $851,478, reflecting a 0.2% 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 September 2024. In fact, BC’s average home price is down 2.8% 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.
Inventory Levels
One of the critical factors influencing the Ontario housing market is the level of available inventory. As of September 2024, inventory levels have increased significantly, providing more options for buyers as inventory reaches a multi-year high for the month of September. 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.
Interest Rates
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.
Source: https://wowa.ca/ontario-housing-market