Ontario Home Prices on the Rise: Home Buyers Should Make Their Move Now

If you are an aspiring home buyer planning to buy a home in Ontario in the coming months then you need to buckle up and get ready to make your move as soon as possible. Why? Because in the last 10 weeks the Ontario housing market has picked up speed after a sluggish market in December. With both the average selling price and the number of units sold witnessing substantial increases, coupled with the impending arrival of spring, it is increasingly probable that this upward trend will persist, setting the stage for a highly competitive market in the coming months.

The Average Price

During the first week of January 2024, the initial figure of $804K has surged impressively to $875K by the third week of February 2024, marking an 8.8% increase in just 7 weeks. Comparatively, in February 2023, the average selling price of a home stood at $882.24K, and February 2024 is nearing that figure with a week still remaining. The significant rise in new listings and transactions stands as the primary driving force behind this upward trajectory in home prices. Given the fact that new listings in Ontario have jumped from 12.78K to 16.06K in February week 3 alone (25.67% increase) we can only assume that the Ontario market is bracing itself for a surge of buyers which will jack up the prices further.

Units Sold

The surge in units sold vividly illustrates the upward trajectory of the average selling price. Following a significant decline in sales during the final weeks of December 2023, sales experienced a remarkable surge of 43.36% in January. This sudden spike in sales can be attributed to the sluggish winter market of December, which dissuaded prospective home buyers. However, with the winter season nearing its end, buyers have been flocking in, bolstering sales and subsequently driving up prices. From the onset of January to the first week of February, sales have consistently risen. Despite a slight dip in week two, it pales in comparison to December's downturn, indicating a sustained upward trend.

The Spring Factor

Spring brings warmer weather, increased listings, and family-friendly timing, culminating in a highly competitive period in the Canadian housing market.

This trend is supported by data

• The Canadian Real Estate Association (CREA) reports that average national home prices consistently peak in March or April.

• CREA also reveals that listings typically rise significantly in spring compared to winter. In 2023, new listings jumped by 32% between February and March.

• The Sold-to-List Price Ratio (SPAR), which depicts the average selling price as a percentage of the listed price, often rises in spring. A 2021 report by the Fraser Institute showed that the SPAR in major Canadian cities consistently peaked in the spring months.

This means that with Spring beginning march the Canadian housing market is going enter a state of high competition, Buyers will have a loads of options to choose from but the prices, as we can already see, will match that.

Bottom Line

That is why we suggest that is you have been planning to buy a home soon and have the budget for it you need to act fast as in the coming months a huge of influx of buyers such as you is coming. This will drive up demand in the Ontario housing market which will undoubtedly result in higher prices. Typically speaking according to multiple surveys, on an average home prices increase by 5.5% during the spring season. So as a homebuyer either you will have to act quickly or put a hold on your real estate goals till the season ends and make do with a limited inventory size.