Ontario Housing Market as of February 2023
A resurgence in Ontario home prices in February 2023 has brought the province’s average home price to $865,279, up 8% month-over-month, the highest that it has been since June 2022. Despite that, Ontario’s average home price is still down 20% year-over-year compared to the housing market’s peak last February. That’s the largest year-over-year drop of any Canadian province this month.
The 20% decrease in prices over the past year has been brought on by Bank of Canada rate hikes and rising Canadian mortgage rates, which has affected demand for homes. The 8% increase in prices compared to last month might show some support in prices as demand returns to the market.
As home prices in Ontario remain lower year-over-year, they’re also lower across the country. Canada’s average home price, at $662,437 for the month of February 2023, is down 19% year-over-year. BC’s housing market is seeing average prices down 15% year-over-year. However, some Atlantic provinces are starting to see home prices increase again. PEI home prices are up 6% year-over-year. The same year-over-year increase can be seen in Newfoundland.
The Greater Toronto Area (GTA) housing market, which accounted for 16% of all home sales in Canada for the month of February 2023, saw some support in home prices this month. The GTA’s average home price for February 2023 was $1,095,617, up 5.5% month-over-month and down 18% year-over-year. That’s slightly better than the province’s 20% annual drop.
Sales activity in many of Ontario’s major housing markets remains lower year-over-year. Home sales in Toronto are down by 47% year-over-year while Ottawa’s housing market is seeing a 40% decrease in sales year-over-year. Activity in Hamilton’s housing market has also slowed, with Hamilton’s sales activity down 62% year-over-year. Mississauga home sales are down 55% year-over-year and home sales activity in Brampton is significantly down by 58% compared to last year.
Looking at Ontario’s major urban housing markets in terms of annual price change for February 2023, the GTA had an 18% year-over-year decrease in average sold prices. Next up was Ottawa with a 16% decrease in prices year-over-year. Mississauga saw a 18% decline in prices year-over-year, while Hamilton home prices are down 21%. Brampton’s housing market has seen a significant 24% decrease in average sold prices year-over-year, while Oshawa’s housing market had a 30% year-over-year decline in prices.
The average home price in Toronto’s housing market for February 2023 was $1,071,043 for the City of Toronto and $1,095,617 for the GTA. Brampton had an average selling price of $1,028,192. Meanwhile, Mississauga home prices increased 10% compared to last month to rise to $1,009,803.
The Hamilton and Ottawa housing markets remain cheaper alternatives to the GTA’s expensive home prices. Hamilton’s average sold price for February 2023 was $800,584, while Ottawa’s average sold price was $631,582. Real estate in London, Ontario, also remains relatively affordable, with an average price of $621,912. Oshawa had an average price of $767,034