Average Home Prices in Ontario for December 2023
Avg. Sold Price: $853,915
Monthly change: 2%
Quarterly change: 0.3%
Annual change: 5%
Ontario Housing Market as of December 2023
You might be looking to buy land in Ontario to build your future home, for commercial purposes, or as an investment. Buying land in Canada can be complicated While Ontario’s December home sales are up 2.4% compared to December 2022, sales were well below the 10-year average for the month of December, with 7,723 sales in December 2023.
The average Ontario home sold price in December 2023 saw a strong increase of 5% from December 2022, bringing the average house price in Ontario to $853,915. That’s up 2.4% from last month. In contrast, the annual 2023 average price came in at $872,312, a 6% decline from 2022’s annual average price. Looking at another measure of prices, the benchmark home price for a “typical” home in Ontario was $851,000, down 1.2% month-over-month and down 0.5% from last year.
Nationally, Canada’s housing market is seeing similar price gains, with the national average price experiencing an increase of 5% year-over-year, at $657,145 in December 2023, which is also a 2% monthly increase.
There was quite a positive upswing in active residential listings, which increased by 19% from December 2022 to 30,100 – the highest number of active listings in five years for December. Meanwhile, new residential listings dropped slightly, with 8,960 new listings, a decrease of 6% from December 2022.
The sales-to-new-listings ratio (SNLR) in December 2023 was recorded at 86%. This ratio represents a seller’s market, which has an SNLR of over 60%, and indicates that there is more buyer demand than seller supply in the housing market. However, the SNLR typically spikes in December as sellers hold off on listing their homes.
Looking at Ontario’s major urban housing markets in terms of annual price changes for December 2023, many cities are still seeing higher home prices compared to last year. The exception is Oshawa and Mississauga, with Oshawa’s housing market seeing prices 6% lower compared to the same month last year, while Mississauga home prices are down 3% year-over-year.
Many urban housing markets in Ontario are still seeing year-over-year increases in average home prices, such as Brampton (+0.5%), Kitchener-Waterloo-Cambridge (+3%), and Ottawa (+4%). In London, home prices are up 2.5% year-over-year. The City of Toronto has seen prices increase 4% year-over-year.
Overall, the Ontario housing market continues to experience a mix of trends and varying levels of activity, with some regions seeing modest growth while others are experiencing declines.
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 | |
| Rent Control |
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 |
|---|---|---|
| RBC | -13.7% | 2.9% |
| TD | -13.3% | 0.8% |
Article Written by Wowa.ca
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