Ontario Housing Market as of December 2024
- Greater Toronto Area’s average home price decreased by 1.6% year-over-year to $1,067,186
- City of Toronto’s average home price decreased by 2.7% year-over-year to $1,033,742
- Ottawa’s average home price increased by 4.9% year-over-year to $663,781
- Mississauga’s average home price increased by 2.8% year-over-year to $977,833
- Brampton’s average home price decreased by 3.9% year-over-year to $948,170
- Hamilton’s average home price increased by 1.6% year-over-year to $772,70
Ontario Housing Market as of December 2024
Inventory continues to build in Ontario’s housing market as the province experiences listing activity above the historical 10-year average while sales activity lags behind. The average Ontario home price for the month of December 2024 was $834,123, down 3.9% from last month’s price of $868,067 in November 2024 and down by 2.3% year-over-year.
Ontario is the only province in Canada’s housing market to experience a year-over-year decrease in its average home price compared to December 2023. Ontario’s monthly price decline of 3.9% is also the largest among the provinces this month.
Ontario’s benchmark home price of $849,600 is down 0.2% monthly and up just under 0.1% yearly. There were 8,997 home sales in Ontario during December 2024, an 8.1% year-over-year increase. Home sales in many provinces are up annually off the back of consecutive Bank of Canada rate cuts, although they have moderated over the past month. That’s largely due to seasonality, as December typically sees a slowdown in both sales and new listings. Annual home sales in 2024, at 180,881 homes sold in 2024, is up 3.1% from the number of homes sold in 2023.
There was an upswing in active residential listings in Ontario, which increased by 24.7% year-over-year to 43,779 listings on the market at the end of December 2024 – the highest number of active listings in over a decade for the month of December. That’s 49% above December’s 10-year average. Meanwhile, there were 11,669 new residential listings, an increase of 19% from December 2023. That’s the largest number of new listings for the month of December since 2020.
The sales-to-new-listings ratio (SNLR) in December 2024 was recorded at 77%. This ratio represents a seller’s market, which is defined as an SNLR of above 60%. The SNLR of many of Ontario’s major cities increased this month, with all major markets, except for Brampton, now in a seller’s market
Greater Toronto Area (GTA)
The GTA is Ontario’s most dynamic and expensive real estate market. The average home price in the GTA in December 2024 was $1,067,186, representing a 1.6% decrease year-over-year and a 3.5% decrease compared to the previous month. The City of Toronto’s average home price is $1,033,742, down 2.7% year-over-year and down 4.3% monthly. Suburban areas such as Mississauga and Brampton are experiencing mixed price changes, with Mississauga average home prices up 2.8% year-over-year to $977,833. On a monthly basis, Mississauga home prices are down 1.7% compared to November 2024. In comparison, the average Brampton home price is down 3.9% year-over-year to $948,170, down 6.7% monthly. Over in Oshawa’s housing market, average home prices are up 5.7% year-over-year to $769,082.
Ottawa
Ottawa’s housing market had an average home price of $663,781, up 4.9% year-over-year. Ottawa’s benchmark home price has also increased year-over-year, up 3.8% to $645,800. Ottawa’s robust job market, particularly in the public sector, and high quality of life make it an attractive destination for Ontario homebuyers.
Hamilton and Niagara
The average home price in Hamilton is now $772,705, up 1.6% year-over-year. Niagara North had an average home price of $829,538, up 7.6% year-over-year, while Burlington saw prices decrease 0.9% year-over-year to $1,040,535. These regions are popular among young families and retirees looking for a balance between urban amenities and a quieter lifestyle.
Kitchener-Waterloo and London
Kitchener-Waterloo and London have seen significant growth in the past few years, with their tech sectors attracting young professionals, although home price growth is slowing. The average home price in the Kitchener-Waterloo Region is now $763,840, up 3.1% year-over-year. In London’s housing market, the average home price is $636,942, up 1.4% year-over-year. These regions are attractive for both first-time buyers and investors.
Price Trends
According to the latest Ontario housing market data for December 2024, the average home price in Ontario is now $834,123, reflecting a 2.3% year-over-year decrease. Ontario and BC are the most expensive provinces in Canada to buy a house. These provinces had among the smallest year-over-year price gains inCanada’s housing market in December 2024, with Ontario’s being the only one to decrease. BC’s average home price is up 5.0% year-over-year. Average home prices in other provinces are up annually quite significantly. This stagnation is because Ontario home prices have risen by nearly 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 December 2024, inventory levels have increased significantly, providing more options for buyers, reaching the highest level for the month of December in over a decade. The 4.9 months of inventory in December 2024 is well above the 10-year average for December, which is 2.9 months of inventory. 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. While sales activity is also up year-over-year, it still remains 18% below the 10-year average for the month of December.
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 another jumbo 0.50% cut in December 2024 and possible future rate cuts in the coming months, may help to improve market conditions in Ontario’s housing market in the coming months.
