Ontario Housing Market Report
- Average home prices in Ontario decreasedby 20% year-over-year to reach$865,279
- Greater Toronto Area home prices decreasedby 18% year-over-year to$1.10M
- City of Toronto home prices decreasedby 12% year-over-year to$1.07M
- Ottawa home prices decreasedby 16% year-over-year to$632k
- Mississauga home prices decreasedby 18% year-over-year to$1.01M
- Brampton home prices decreasedby 24% year-over-year to$1.03M
- Hamilton home prices decreasedby 21% year-over-year to$801k
Average Home Prices in Ontario for February 2023
Historical Average Home Prices in Ontario
Note: Data sourced from the Canadian Real Estate Association (CREA), the London and St. Thomas Association of REALTORS®, and other regional or local realtor boards.
Ontario Housing Market as of February 2023
A resurgence in Ontario home prices in February 2023 has brought the province’s average home price to $865,279, up 8% month-over-month, the highest that it has been since June 2022. Despite that, Ontario’s average home price is still down 20% year-over-year compared to the housing market’s peak last February. That’s the largest year-over-year drop of any Canadian province this month.
The 20% decrease in prices over the past year has been brought on by Bank of Canada rate hikes and rising Canadian mortgage rates, which has affected demand for homes. The 8% increase in prices compared to last month might show some support in prices as demand returns to the market.
As home prices in Ontario remain lower year-over-year, they’re also lower across the country. Canada’s average home price, at $662,437 for the month of February 2023, is down 19% year-over-year. BC’s housing market is seeing average prices down 15% year-over-year. However, some Atlantic provinces are starting to see home prices increase again. PEI home prices are up 6% year-over-year. The same year-over-year increase can be seen in Newfoundland.
The Greater Toronto Area (GTA) housing market, which accounted for 16% of all home sales in Canada for the month of February 2023, saw some support in home prices this month. The GTA’s average home price for February 2023 was $1,095,617, up 5.5% month-over-month and down 18% year-over-year. That’s slightly better than the province’s 20% annual drop.
Sales activity in many of Ontario’s major housing markets remains lower year-over-year. Home sales in Toronto are down by 47% year-over-year while Ottawa’s housing market is seeing a 40% decrease in sales year-over-year. Activity in Hamilton’s housing market has also slowed, with Hamilton's sales activity down 62% year-over-year. Mississauga home sales are down 55% year-over-year and home sales activity in Brampton is significantly down by 58% compared to last year.
Looking at Ontario’s major urban housing markets in terms of annual price change for February 2023, the GTA had an 18% year-over-year decrease in average sold prices. Next up was Ottawa with a 16% decrease in prices year-over-year. Mississauga saw a 18% decline in prices year-over-year, while Hamilton home prices are down 21%. Brampton's housing market has seen a significant 24% decrease in average sold prices year-over-year, while Oshawa’s housing market had a 30% year-over-year decline in prices.
The average home price in Toronto’s housing market for February 2023 was $1,071,043 for the City of Toronto and $1,095,617 for the GTA. Brampton had an average selling price of $1,028,192. Meanwhile, Mississauga home prices increased 10% compared to last month to rise to $1,009,803.
The Hamilton and Ottawa housing markets remain cheaper alternatives to the GTA’s expensive home prices. Hamilton’s average sold price for February 2023 was $800,584, while Ottawa’s average sold price was $631,582. Real estate in London, Ontario, also remains relatively affordable, with an average price of $621,912. Oshawa had an average price of $767,034.
Housing Markets of Major Cities in Ontario
|City||Average Home Prices|
$1,071,043-11.5% vs. 2022
2,794,3562.3% vs. 2016
$631,582-16.1% vs. 2022
1,017,4498.9% vs. 2016
$800,584-21.0% vs. 2022
569,3536.0% vs. 2016
$1,009,803-17.6% vs. 2022
717,961-0.5% vs. 2016
$1,028,192-23.6% vs. 2022
656,48010.6% vs. 2016
Greater Toronto Area (GTA) Housing Market Overview
Greater Toronto Area (GTA) Housing Market Trends
Toronto Housing Market Overview
Toronto Housing Market Trends
Ottawa Housing Market Overview
Ottawa Housing Market Trends
Hamilton Housing Market Overview
Hamilton Housing Market Trends
Mississauga Housing Market Overview
Mississauga Housing Market Trends
Brampton Housing Market Overview
Brampton Housing Market Trends
London Housing Market Overview
London-St. Thomas Housing Market Trends
Ontario Housing Market Forecast for 2023
Ontario’s housing market saw a sharp correction in prices in 2022 as Bank of Canada rate hikes brought about rising interest rates, stifling demand. Looking forward, Ontario’s housing market forecast for 2023 depends on a few factors.
A pause in Bank of Canada rate hikes, something that is widely predicted as inflation eases off and as the risk of a recession increases, might even translate into rate cuts this year. Immigration, looking mainly at newcomers and international students, has also been returning to normal levels. More people looking for a home will boost demand. Met with a shortage in housing inventory, a surge in buyers will introduce upward pressure on housing prices.
The federal government banned foreign buyers from buying a home in Canada, starting in 2023. Should interest rates continue to increase, demand will be crippled further.
Ontario’s Housing Market Forecast: Things to Watch
|Negative Impact||Positive Impact|
|Higher Interest Rates||Higher Immigration Levels|
|Government Policies:||Housing Inventory Shortage|
|Mortgage Stress Test Changes||Stronger Economic Recovery|
|Vacancy Tax and Foreign Speculation Tax|
|Foreign Buyer’s Ban|
|Zoning and Increased Supply of Housing|
A look at house price forecasts by Canada’s major banks gives us a look at what they predict Ontario house prices will be in 2023 and 2024.
RBC predicts that Ontario home prices will decrease 13.7% in 2023, and increase 2.9% in 2024. RBC also forecasts that home sales in Ontario will decrease by 13.9% in 2023 and increase by 34.1% in 2024.
TD predicts that Ontario average home prices will fall by 13.3% in 2023 before rising a modest 0.8% in 2024. For Ontario home sales, TD forecasts an 8.1% decrease for 2023 and an 18% increase in 2024.
Ontario Housing Market Forecast 2023 and 2024
|Forecast By:||2023 Price Growth||2024 Price Growth|
Housing Markets Across Canada
Data sourced from the Toronto Regional Real Estate Board (TRREB) and the Canadian Real Estate Association (CREA). Any analysis or commentary is the opinion of the analysts at WOWA.ca and should not be construed as investment advice. Please consult a licensed real estate professional before making a real estate investment decision. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA.