In February 2023, the average home price in Ontario rose to $865,279, an increase of 8% over the previous month and the highest level since June 2022. Despite this, the average Ontario home price is 20% lower year-over-year than it was in February, when the housing market peaked. This is the largest annual loss for any Canadian province this month. The 20% decrease in prices over the last year has been attributed to the Bank of Canada’s rate hikes and rising mortgage rates in Canada, which have reduced home demand. When demand returns to the market, the 8% increase in pricing compared to the previous month may signal price support.
While Ontario’s home prices continue to decline annually, they are also declining nationally. In February 2023, the average home price in Canada was $662,437, showing a 19% year-over-year drop. Annually, the average property price in British Columbia has declined by 15%. In several Atlantic provinces, however, home prices are starting to climb again. PEI housing costs have climbed by 6% annually. Newfoundland’s growth is consistent from year to year.
The Greater Toronto Area (GTA) housing market, which accounted for 16% of all Canadian home sales in February 2023, saw little price support this month. In February 2023, the average home price in the Greater Toronto Area was $1,095,617, up 5.5% month-over-month and down 18% year-over-year. This is slightly better than the 20% annual drop in the province.
Some of Ontario’s largest housing markets continued to see year-over-year sales declines. The Toronto housing market is witnessing a 47% fall in house sales year-over-year, while the Ottawa housing market is suffering a 40% decline. The Hamilton real estate market has also declined, with sales activity down 62% year-over-year. Mississauga home sales are down 55% compared to the previous year, while Brampton home sales are down 58%.
In February 2023, the average price of a home sold in the GTA fell by 18% compared to the same time last year. This was the largest annual price change of the major Ontario property markets. Ottawa thereafter had a 16% annual price drop. Mississauga saw an annual price fall of 18%, while Hamilton experienced a 21% decline. Brampton’s housing market has witnessed a significant 24% year-over-year fall in average sold prices, while Oshawa’s housing market has experienced a 30% year-over-year decline in prices.
In February 2023, the average home price for the City of Toronto was $1,071,043 and for the Greater Toronto Area, it was $1,095,616. The average selling price in Brampton was $1,028,192. Meanwhile, property prices in Mississauga increased 10% month-over-month, hitting $1,009,803. The real estate markets in Hamilton and Ottawa continue to offer less expensive alternatives to the expensive home market in the Greater Toronto Area. In February 2023, the average selling price in Hamilton was $800,584, compared to $631,584 in Ottawa. With an average price of $621,912, real estate in London, Ontario, is still fairly affordable. In Oshawa, the average price was $767,034.