Ontario Housing Market Report

Average Home Prices in Ontario for June 2022

Historical Average Home Prices in Ontario

Ontario Housing Market as of June 2022

For June 2022, the average price of a home in Ontario increased 3% year-over-year to $881,475. Similar to other Canadian housing markets, the average Ontario home price has been slipping over recent months during a time of rising interest rates and slowing demand. June 2022’s average home price of $881,475 is a 6% drop compared to last month’s average home price of $940,485 in May 2022.

Average sold prices in Ontario’s housing market peaked in February 2022, when the average sold price reached $1,086,493 in the province. That was the first and second-to-last time that Ontario’s housing market ever saw its average price above the $1 million mark. This ended in March 2022 when the average price fell back below $1 million.

Compared to the February 2022 peak, Ontario home prices are down by almost 19% in just four months. The average sold price of a home in Ontario today is $200,000 less than it was during the February 2022 peak. This comes about during a period of aggressive Bank of Canada rate hikes and rising Canadian mortgage rates.

June 2022’s significant slump in home prices on a monthly basis 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. However, even after June’s month-over-month dip, home prices in Ontario are still up year-over-year, just at a moderated pace. In comparison, the average sold price of a home in Canada nationally is down by 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 42% year-over-year while Ottawa’s housing market is seeing a 29% decrease in sales year-over-year. Activity in Hamilton’s housing market has also slowed, with Hamilton's sales activity down 35% year-over-year. Mississauga home sales are down 43% year-over-year and home sales activity in Brampton is down by a stunning 53% compared to last year.

Ranking Ontario’s major urban housing markets in terms of annual price growth for June 2022, Hamilton led the way with a 10% year-over-year increase in average sold prices. Next up were Mississauga and London, Ontario, which both had a 7% year-over-year increase in prices. Brampton and Ottawa home prices saw a 5% year-over-year increase, while GTA home prices also saw a 5% year-over-year increase.

After seeing extraordinary price gains earlier this year, Ontario’s housing market is now seeing annual price gains similar to other Canadian housing markets. For instance, home prices in Edmonton have had a 2% year-over-year price increase for June 2022, while Calgary’s housing market sits with a 5% year-over-year price increase for June 2022. Winnipeg stands with an 8% year-over-year increase, while Montreal had a 9% year-over-year increase in its average sold price.

Toronto, Mississauga, and Brampton all continue to have average sold prices above the $1 million mark this month. The average home price in Toronto’s housing market for June 2022 was $1,152,175 for the City of Toronto and $1,146,254 for the GTA, while Brampton’s average sold price was $1,063,479. Rounding out the top three was Mississauga, which had an average sold price of $1,093,743 in June 2022.

The Hamilton and Ottawa housing markets remain cheaper alternatives to the GTA’s expensive home prices. Hamilton’s average sold price for June 2022 was $863,016, while Ottawa’s average sold price was $690,940. Real estate in London, Ontario, also remains relatively affordable, with an average price of $686,287.

Looking at year-over-year price increases in the rest of the province, some housing markets in Northern Ontario continue to see exceptional price growth when looking at benchmark prices. The benchmark home price in Sault Ste. Marie is up 33% year-over-year to $313,600, and North Bay has seen benchmark prices rise 24% over the past year to $437,300. For other areas, Windsor home prices are up 28%, Kitchener-Waterloo home prices are up 7%, Sudbury home prices are up 21%, Thunder Bay home prices are up 12.5%, Cornwall home prices are up 18%, Barrie home prices are up 17%, and Kingston home prices are up 13% year-over-year.

The expansion of the CMHC First-Time Home Buyer Incentive in the Toronto CMA, which spans most of the Golden Horseshoe Region, provided a small boost to housing demand for sub-$700K properties in the GTA. In addition, the CMHC adjusted their standards for mortgage insurance in 2021, broadening the eligibility to allow more levered and lower credit applications. While insured mortgages are becoming a smaller proportion of total mortgage origination volume, this is still likely to help marginal buyers enter the market.

Counteracting these changes, the Office of the Superintendent of Financial Institutions (OSFI) raised the benchmark rate for the mortgage stress test in 2021. This change, coupled with rapidly rising mortgage rates in Ontario, is expected to limit the affordability of both insured and uninsured borrowers. This will dampen the demand for housing in Ontario.