Ontario Real Estate Market Update – October 2024

The Ontario real estate market has experienced noticeable shifts in recent months, signaling a strong buyer’s market as we move into fall. With more properties available and slight interest rate reductions, Ontario buyers have more options and bargaining power. This post will highlight the key market trends from September 2024 and provide insights into what we can expect as 2025 approaches.

Current Market Conditions

As of September 2024, Ontario has seen an increase in both new and active listings:

• New Listings Surge: Over 38,820 new residential properties were added in September, marking a 7.8% increase compared to the same time last year​
  nesto.ca.
• Active Listings: The number of active listings rose significantly to 64,503, a 25.6% increase year-over-year. This increase in inventory provides more choices for buyers, who now have greater negotiating power​
  CreaStats , WOWA

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The sales-to-new-listings ratio (SNLR) for Ontario sits at 34%, indicating a buyer’s market. For reference, an SNLR under 40% typically suggests that buyers have the upper hand due to abundant listing availability compared to sales​  nesto.ca.

Pricing Trends:

Despite the uptick in listings, Ontario’s average home prices have held steady with minimal changes:

• Average Price: The average home resale price in Ontario is around $851,478, which is just a 0.2% increase from last year. This stability provides confidence for both buyers and sellers who may have been concerned about potential price drops​ nesto.ca.

Interest Rates and Forecasts:

The Bank of Canada has lowered interest rates by 75 basis points since summer, bringing the current rate to 4.25%. This reduction is expected to encourage more buying activity in the coming months. Further rate cuts are anticipated, potentially leading to a market boost in 2025.

According to projections, Ontario’s home sales are forecast to rise by nearly 10% in 2025, with a moderate price increase of around 2.4% due to pent-up demand. The expected interest rate cuts should make homeownership more accessible for a broader range of buyers​  CreaStats , WOWA.

What to Expect in 2025:

Looking ahead, Ontario’s real estate market could see increased activity:

• Increased Sales: As interest rates ease, more buyers are likely to enter the market, leading to higher sales volumes in the spring and summer of 2025.
• Modest Price Growth: Prices are expected to see moderate growth of about 2.4%, as demand gradually catches up with the supply of listings.

Conclusion

The Ontario real estate market is currently favorable for buyers, with increased listing options and the potential for continued interest rate reductions. If you’re considering buying or selling, now could be a great time to enter the market or start planning for the coming year.

This post was crafted with the assistance of AI technology, based on the latest data and trends in the Ontario real estate market.