Ontario Housing Market Report

Average Home Prices in Ontario for October 2022

Historical Average Home Prices in Ontario

Ontario Housing Market as of October 2022

The average home price in Ontario’s housing market has dropped on a monthly basis for seven out of the past eight months as Bank of Canada rate hikes and rising Canadian mortgage rates put a chill on the market. For October 2022, the average Ontario home price was $835,090, down 8.5% year-over-year and down a further 0.1% compared to last month.

This dip in prices comes about even after the Greater Toronto Area (GTA) housing market experienced a slight increase in prices this month, the third monthly price gain in a row, in contrast to the rest of the province. The GTA’s average home price for October 2022 was $1,089,428, up 0.25% from last month and down 6% year-over-year.

Average sold prices in Ontario’s housing market peaked in February 2022, when the average sold price reached $1,086,493 in the province. Since then, Ontario home prices are now down by 23% over the course of eight months. Today's average sold price of a home in Ontario is $251,000 less than it was during the February 2022 peak. This coincides with Bank of Canada rate hikes this year, which started in March 2022. Since February, Canadian prime rates have more than doubled from 2.70% to the current prime rate of 5.95%. During this same period, Canada’s inflation rate has gone from 5.69% in February 2022 to 6.9% in October 2022.

October 2022’s continued slide in home prices is a trend seen in many of Ontario’s major housing markets over recent months. Average sold prices in Toronto, Hamilton, Ottawa, and Mississauga broke all-time records in February 2022, yet they have all since fallen from their record-breaking highs. Average home prices in Ontario are down by 8.5% compared to last year. In comparison, the average sold price of a home in Canada nationally is down by 10% year-over-year. Prices in BC’s housing market are down by only 3% year-over-year, while home prices in Alberta are up 2% year-over-year.

As Ontario’s housing market cools, a common pattern seen among major Ontario cities is the significantly lower transaction numbers compared to the same month last year. Home sales in Toronto are down by 49% year-over-year while Ottawa’s housing market is seeing a 41% decrease in sales year-over-year. Activity in Hamilton’s housing market has also slowed, with Hamilton's sales activity down 44% year-over-year. Mississauga home sales are down 53% year-over-year and home sales activity in Brampton is also down by 53% compared to last year.

Ranking Ontario’s major urban housing markets in terms of annual price growth for October 2022, Mississauga led the way with a 1% year-over-year decrease in average sold prices, which was the most moderate decline. Next up was Ottawa with a 2% decrease in prices year-over-year. London home prices saw a 5% year-over-year decrease, while GTA home prices saw a 6% year-over-year decrease. Brampton's housing market had an 8% decrease in average sold prices year-over-year, on par with Oshawa’s housing market 8% year-over-year decline in prices. Hamilton experienced the largest price decline, down by 9% year-over-year.

Toronto and Brampton continue to have average sold prices above the $1 million mark this month, even if just barely. The average home price in Toronto’s housing market for October 2022 was $1,093,097 for the City of Toronto and $1,089,428 for the GTA. Brampton’s average selling price was $1,003,263. Mississauga fell out of the $1 million club this month, which is the first time that Mississauga’s average sold price has been below $1 million since October 2021. For October 2022, Mississauga’s average home price was $987,356.

The Hamilton and Ottawa housing markets remain cheaper alternatives to the GTA’s expensive home prices. Hamilton’s average sold price for October 2022 was $790,130, while Ottawa’s average sold price was $624,003. Real estate in London, Ontario, also remains relatively affordable, with an average price of $640,570. Oshawa had an average price of $782,227.

Looking at year-over-year price increases in the rest of the province, some housing markets in Ontario continue to see interesting annual price movements when looking at average prices. Some areas of Ontario are still seeing home prices that are higher than they were last year, even as the provincial average remains lower than last year. Cornwall's average home price of $413,907 is up 7% year-over-year, while Timmins saw its average home price increase by 8% year-over-year to $256,942.

Markets with relatively moderate changes include Thunder Bay, where prices are down 0.2% year-over-year to $309,310, and Sarnia-Lambton, with an average price of $471,486, down 2% year-over-year.