Spring Into Action: Navigating Ontario’s Competitive Housing Market in 2024

If you have been planning to buy a home in Ontario this year then you need to act now because chances are you might not get an opportunity later. Canada has now entered the infamous spring market which is widely considered as the most busy (and competitive) real estate season, with good reason. With the snow gone and flowers blooming, houses tend to look their best in spring. Pleasant weather brings more people out looking for houses. Families with children are often motivated to move before the new school year starts. This increased buyer pool can lead to faster sales and potentially higher offers for sellers which lead to more sellers listing their homes. This time is no exception and the Ontario housing numbers prove just that, here is what we are talking about.

What do The Numbers say?

The latest data paints a vivid picture of Ontario's housing market landscape this spring. With a remarkable surge in activity, it's becoming increasingly evident that Ontario is emerging as one of the most fiercely competitive markets. Transaction numbers have spiked by a notable 17.79%, accompanied by a substantial 11.59% increase in new listings. This influx of both buyers and sellers flooding the market daily is propelling home prices skyward across all property types, registering a notable 0.98% to 2.79% surge. Currently, the average selling price of a home in Ontario has already soared to an impressive $906,000, up from $891,000. And with the spring market in full swing, there's every indication that this trajectory is set to continue its upward climb.

According to Manoj Karatha broker of record for The Canadian Home, "The market is already transitioning from balanced to a seller's market, a trend typically observed during spring. That is why as days go by home prices will be more and more in favour of sellers and buyers will risk getting outpriced of the market if they wait too long. So don't do that"

History Repeats - A Spring Market Tale

The spring real estate market usually kicks off between March and May, but the peak month for home sales isn't set in stone. It depends on how things are going economically and socially. Sometimes, the market gets hot as early as February, and other times, it takes until May to really pick up steam.

In 2019, home sales hit their highest point in May, with over 54,000 sales nationwide. But in 2020, the pandemic threw things off. There was a small surge in March, but the big spike didn't happen until July, showing how the market reacted to the uncertainty of the times.

Then came 2021, which was a bit of a surprise. Despite the ongoing pandemic, home sales skyrocketed to a record high in March, surpassing even pre-pandemic levels. Low-interest rates kept the market buzzing, blurring the lines between spring and summer buying seasons. But as rates started to rise in 2022, people rushed in to buy before they climbed too high, leading to a peak in March before things cooled down a bit. Now, as we look ahead to 2024, it's quite clear to see that the market is heating up and will soon reach the peak spring market trends.

It's Time To Speed Up Your Game

The numbers and past trends bring us to a simple conclusion that if you have enough saved for a down payment then buying now is the right step to take. Right now we have cities like London and Barrie where home prices are still in the budget-friendly range while high-priced cities like Toronto and Mississauga will only go higher. That means as a home buyer you will either have options which are out of budget range or very limited. According to Robin Cherian CEO of The Canadian Home "Bank of Canada is expected to lower the policy rates sometime in the later half of the year. As we all know when rates go down home prices go up which means that significant price decreases are an unlikely scenario in 2024. My advice is if you have the budget jump in the rising pool of inventory because tomorrow might be too late."

And we 100% agree with that sentiment. So, speed up your game by contacting us at The Canadian Home where expert realtors and premium listings are waiting for you. The spring market is a game of the fastest fingers first and it has no place for latecomers.