Ontario Housing Market as of January 2025
- Greater Toronto Area’s average home price increased by 1.4% year-over-year to $1,040,994
- City of Toronto’s average home price increased by 2.7% year-over-year to $985,653
- Ottawa’s average home price increased by 6.1% year-over-year to $670,258
- Mississauga’s average home price remained the same year-over-year, at$1,047,025
- Brampton’s average home price remained the same year-over-year, at $985,321
- Hamilton’s average home price decreased by 4.8% year-over-year to $757,071Inventory has surged in Ontario’s housing market, with new and active listings in January 2025 surpassing 10-year highs for the month. The average Ontario home price for the month of January 2025 was $834,050, largely unchanged from last month’s price of $834,123 in December 2024 and up by 1.5% year-over-year.There were 8,912 home sales in Ontario during January 2025, a 10% year-over-year decrease. That’s 18% below the 10-year average for January.
In comparison, the national average home price in Canada’s housing market was $670,064, up 1.1% year-over-year, with sales up 2.9% year-over-year nationwide. Home sales in many other provinces are up annually off the back of consecutive Bank of Canada rate cuts throughout 2024 that began in June.
There was an upswing in active residential listings in Ontario, which increased by 35.7% year-over-year to 44,913 listings on the market at the end of January 2025 – the highest number of active listings in over a decade for the month of January. That’s 53% above January’s 10-year average.
Meanwhile, there were 25,844 new residential listings, an increase of 26% from January 2024. That’s the largest number of new listings for the month of January in over 15 years.
The sales-to-new-listings ratio (SNLR) in January 2025 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 decreased this month, with all major markets, except for Ottawa, Oshawa and Hamilton, now in a Buyer’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 January 2025 was $1,040,994, up 1.4% year-over-year and down 2.5% monthly. The City of Toronto’s average home price is $985,653, up 2.7% year-over-year and down 4.7% monthly. Suburban areas such as Mississauga and Brampton are experiencing mixed price changes, with Mississauga average home prices down 0.2% year-over-year to $1,047,025. On a monthly basis, Mississauga home prices are up 7.1% compared to December 2024. In comparison, the average Brampton home price is up 0.3% year-over-year to $985,321, up 3.9% monthly. Over in Oshawa’s housing market, average home prices are down 1.2% year-over-year to $779,868.
Ottawa
Ottawa’s housing market had an average home price of $670,258, up 6.1% year-over-year. Ottawa’s benchmark home price has also increased year-over-year, up 5.2% to $649,900. 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 $757,071, down 4.8% year-over-year. Niagara North had an average home price of $913,731, up 24% year over year, while Burlington saw prices increase 14% year-over-year to $1,105,285. 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 $755,859, down 0.8% year-over-year. In London’s housing market, the average home price is $639,486, up 5.6% 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 January 2025, the average home price in Ontario is now $834,050, reflecting a 2% year-over-year increase. 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 in Canada’s housing marketin January 2025, with B.C. even seeing a decrease year-over-year. Average home prices in the majority of other provinces are up annually in a more significant manner. 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 January 2025, inventory levels have increased significantly, providing more options for buyers as inventory reaches over a decade high for the month of January. The 5.0 months of inventory in January 2025 is well above the 10-year average for January, 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. Meanwhile, sales activity is 18% below the 10-year average for the month of January.
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, multiple interest rate cuts from June 2024 to January 2025, as well as possiblefuture rate cuts in the coming months, may help to improve market conditions in Ontario’s housing market in the coming months.
