Ontario Housing Market Outlook 2025

Table of contents
Ontario Market Report Summary
- The average selling price of a home in Ontario unchanged by 0.0% year-over-year to $849,600 in December 2024.
- The average selling price of a single-family home in Ontario increased by 0.7% year-over-year to $934,300 in December 2024.
- The average selling price of a townhouse/multiplex in Ontario decreased by 0.6% year-over-year to $684,900 in December 2024.
- The average selling price of a condo in Ontario decreased by 4.1% year-over-year to 586,000 in December 2024.
- The average rent in Ontario decreased by 5.0% year-over-year to $2,332 for December 2024.
- February 7, 2025: Today’s lowest mortgage rate in Ontario is
for a 5-year fixed.
Composite Home Prices
The average selling price of a home in Ontario was $849,600 for the month of December 2024, that’s decreased by 0.2% compared to the previous month. On a year-over-year basis, Ontario home prices have unchanged 0.0% over the last 12 months.
Single-family Home Prices
The average selling price of a single-family home in Ontario was $934,300 for the month of December 2024, that’s decreased by 0.2% compared to the previous month. On a year-over-year basis, single-family home prices in Ontario have increased by 0.7% over the last 12 months.
Townhouse and Multiplex Prices
The average selling price of a townhouse in Ontario was $684,900 for the month of December 2024, that’s increased by 0.4% compared to the previous month. On a year-over-year basis, the price of a townhouse in Ontario has decreased by 0.6% over the last 12 months.
Condo Prices
The average selling price of a condo in Ontario was 586,000 for the month of December 2024, that’s decreased by 0.2% compared to the previous month. On a year-over-year basis, the price of a condo in Ontario has decreased 4.1% over the last 12 months.
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Ontario Housing Market Summary
Data from the Ontario Real Estate Association (OREA) indicates that the average price of resale residential homes sold across Ontario in December 2024 was $849,600, and it unchanged of 0.0% compared to a year ago.
OREA indicates also reported a sales-to-new-listings ratio (SNLR) of 77%, indicating a sellers market in Ontario for December 2024.
Ontario Real Estate Ends Year with Rising Sales and Balanced Conditions
According to the Ontario Real Estate Association (OREA), Ontario’s housing market demonstrated notable activity in the last month, with residential sales reported through the real estate boards in the province totalling 8,997 units. This figure represents an 8.1% increase compared to December 2023.
Sales Activity
Home sales totalled 180,881 units last year, a modest 3.1% rise from the previous year. Despite this growth, December’s home sales were 18.8% below the five-year average and 17.8% below the 10-year average, indicating a market still recovering.
Average Home Prices
The average price of resale residential homes sold across Ontario last month was $834,123, a slight decrease of 1.7% from December 2023. For the entire year, the average price stood at $865,287, a marginal reduction of 0.6% compared to 2023. In contrast, last month’s national average price experienced a small gain of 2.5% year-over-year, reaching $676,640.
New and Active Listings
Last month, 11,669 new residential listings were added in Ontario, an 18.8% increase compared to December 2023. This influx positioned new listings 3.5% above the five-year average and 6.5% above the 10-year average for December. At the end of last month, active residential listings numbered 43,779 units, up 24.7% from December 2023, marking the highest level for the month in a decade. Active listings were 63.5% above the five-year average and 48.9% above the 10-year average for December.
Months of Inventory
The months of inventory—a measure of how long it would take to sell current inventories at the current rate of sales activity—stood at 4.9 at the end of last month. This is an increase from the 4.2 months recorded at the end of December 2023 and is above the long-run average of 2.9 months for this time of year, suggesting a shift towards a more balanced market.
These statistics indicate a dynamic and evolving housing market in Ontario, with variations across different regions. While overall sales and listings have increased, average prices have experienced slight declines, suggesting a market adjusting to changing supply and demand conditions.
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Month-over-Month Expectations for Ontario’s Housing Market
Transactions – Number of Sales
The number of sales in Ontario was 8,997 during December 2024, that’s decreased by 0.2% compared to the previous month. On a year-over-year basis, sales in Ontario have decreased by 4.1% over the last 12 months.
New Listings
The number of new listings in Ontario was 11,669 during December 2024, that’s decreased by 53.0% compared to the previous month. On a year-over-year basis, new listings in Ontario have increased by 30.2% over the last 12 months.
Real Estate Market
The sales to new listings ratio (SNLR) in Ontario was 77% during December 2024, indicating a sellers market. On a monthly basis, that’s increased by 39.1% compared to the previous month. Ontario’s yearly sales to new listings ratio has decreased by 10.5% over the last 12 months.
The sales to new listings ratio (SNLR) measures the number of home sales compared to new listings. An SNLR under 40% suggests a buyer’s market in which buyers have the upper hand and more negotiating power. An SNLR between 40% and 60% is a balanced market, while an SNLR of over 60% is considered a seller’s market.
Annual Changes to Regional Composite Home Prices in Ontario
Annual Changes to the Composite Home Price in Ontario
Ontario Market Rents Summary
The average rent in Ontario was $2,332 for the month of December 2024, which decreased by 5.0% on a year-over-year basis.
The average rent for a bachelor apartment in Ontario was $1,784 for the month of December 2024, which decreased by 3.0% on a year-over-year basis.
The average rent for a 1-bedroom apartment in Ontario was $2,126 for the month of December 2024, which decreased by 5.0% on a year-over-year basis.
The average rent for a 2-bedroom apartment in Ontario was $2,564 for the month of December 2024, which decreased by 5.0% on a year-over-year basis.
The average rent for a 3-bedroom apartment in Ontario was $2,126 for the month of December 2024, which decreased by 5.0% on a year-over-year basis.
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How Does Renting Compare with Homeownership in Ontario?
Each $100,000 in mortgage balance costs an average of $533.64 per month on nesto’s lowest fixed 5-year rate at
Rental Price Changes by City
Rental Price Changes by Province
Rental Price Growth by Housing Type
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Frequently Asked Questions (FAQ) on Ontario Housing Market Outlook for 2025
Will Ontario’s housing prices increase in 2025?
Ontario’s housing market is expected to stabilize with modest price increases in 2025. Strong population growth, especially in cities like Toronto, Ottawa, Mississauga and Hamilton, will keep demand high. Limited housing supply and declining mortgage rates are key factors that may drive price recovery, particularly in urban and suburban markets.
Will Ontario’s housing market crash in 2025?
Experts believe a crash is unlikely, though certain regions may see minor price adjustments due to rising inventory. Persistent demand, fuelled by immigration and job growth, will continue to support housing values. A balanced market is more likely than a sharp decline.
How affordable will Ontario homes be in 2025?
Affordability in Ontario will remain challenging, especially in cities like Toronto, Markham, Mississauga, and Hamilton, which have above-average prices due to their location in the GTA. However, smaller markets like London and Windsor may offer better affordability for first-time buyers as prices stabilize.
What trends will drive Ontario’s housing market in 2025?
Key trends include declining mortgage rates, population growth, government initiatives to boost housing supply, and increasing demand for suburban and smaller urban areas.
How can I qualify for a mortgage in Ontario in 2025?
To qualify for a mortgage, assess current mortgage rates in Ontario and ensure you meet lender requirements, including the stress test (not required for straight mortgage transfer/switch renewals between NHA-approved lenders). A mortgage pre-approval or prequalification could give you a competitive edge as buyers re-enter the market.
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EXPLANATIONS
Interest Rates
Property Values
Home Price Index
Property Types
Property Ownership Classes
Strata Insurance
Rental Values
Qualifying Criteria
Professional Titles
Mortgage Experts
Interest Rates
Qualified using nesto’s fixed 5-year insured and uninsured rates as advertised on our website. For today, Friday, February 7, 2025, our example calculations are qualified on our lowest rates, which may or may not apply to your unique financing situation or long-term goals. Insured fixed-rate mortgages will be qualified at
We appreciate your patience and understanding and encourage you to email us at website@nesto.ca with information that needs correction alongside your sources.
Property Values
Home values collected from CREA or QPAREB are those presented as the composite benchmark or average prices for each city/province/region unless specified. They may be interchangeably called average home prices, though an average price may not be available for many regions outside Quebec.
MLS® Home Price Index (HPI)
The MLS® Home Price Index (HPI) is a real estate price index compiled by the Canadian Real Estate Association (CREA) that tracks the price of homes in your neighbourhood. It’s a quick way for Canadians to compare home prices in different parts of Canada and between different periods without having to factor in the unique characteristics of a particular property.
While market prices can vary from one month to the next based on seasonal factors, the Home Price Index (HPI) provides a more consistent view and tracks price trends over an extended period. The Home Price Index (HPI) is updated annually in May to reflect changes in real estate markets.
MLS® HPI is the most comprehensive and precise way to track a neighbourhood’s home price level and trends. MLS HPI uses over 15 years of data from the MLS® System and advanced statistical models to create a “typical” home based on the characteristics of homes purchased and sold. This benchmark home is tracked across all Canadian neighbourhoods and various types of homes.
Property Types
Detached homes, also known as single-family homes, are residential properties that stand alone and are not connected to other buildings. They are legal single residential units on their own parcel of land and have a separate title.
Semi-detached homes are characterized by their unique architectural design. Two houses are built side by side and share a common wall. Although sharing a building, semi-detached homes have their own parcel of land and separate legal titles.
Townhouses are residential dwellings typically characterized by narrow, tall structures, often sharing walls with neighbouring units. Although they may share yards or common elements with their neighbours, townhouses will have separate legal titles from any adjoining building. Townhouses can be purchased as freehold or leasehold within a condo or strata and may come with their own land parcel. Townhouses can be part of a low-rise or high-rise building.
Condo apartments, also known as condominiums, are residential properties that combine elements of apartments and individual homes. It is a unit within a larger building or complex owned by an individual who also shares ownership of common areas and amenities with other residents. Condo apartment owners have legal ownership of their units and can modify them within the guidelines set by the condominium association. Unlike a townhouse, condos do not offer exclusive use of outdoor space unless they come with a balcony or terrace. Condos can be part of a low-rise or high-rise building.
Plexes or multiplexes are unique residential buildings constructed into 2 to 6 units within a single structure. Traditionally, they have been designed as low-rise residential buildings where any unit is accessible via an external entrance with higher floors connected by staircases. Each unit will have a separate registration and title but may share common elements and co-ownership fees with the other multiplex owners. Plexes are common in Québec and older parts of Toronto.
Property Ownership Classes
A freehold is a type of property ownership where an individual or entity has complete and indefinite ownership rights over a property and its parcel of land. Common freehold property types include detached houses, semi-detached houses, farms, and townhouses, which are not part of condominium corporations.
A condominium or condo is a distinct type of property class that combines apartment living and individual homeownership elements. In a condominium, individual units are owned by the residents, while the common areas and amenities are shared among all the unit owners. This type of ownership gives you rights to your specific unit and some rights and responsibilities to the common areas, such as the hallways, elevators, garage, pool and rooftop patios.
A leasehold is a legal arrangement where a person or entity holds the right to use and occupy a property for a specific period, typically through a lease agreement. In some cases, the leaseholder may own the building or unit and rent the land from the landowner (landlord).
Strata insurance
Strata insurance is insurance that a strata or condominium uses to cover damages to common areas, assets and liabilities to the strata. It can also include fixtures built or installed as part of the original construction of each unit, even though these may not be common structures. Strata insurance can cover the following:
- Buildings and structures on the strata’s property, including common areas such as the garage, roof, lobby, pool, etc.,
- Liabilities for any property damage or bodily harm due to an injury suffered on a strata property,
- Which also includes fixtures in the standard unit or part of the original make of each unit.
Strata insurance generally does not cover personal belongings and appliances in a condo unit. Damage caused by individual unit owners (e.g., water damage due to a unit owner’s negligence) is typically covered under personal condo insurance.
Rental Values
Our monthly or year-over-year rental averages are sourced from Urbanation’s monthly Rentals.ca National Rental Report.
Mortgage Qualifying Criteria
Insured qualifying criteria are limited to a 39% gross debt service (GDS) ratio and up to 25 years of amortization. For insured mortgage transaction calculations, we have used a 20% downpayment, unless otherwise indicated, in our examples and excluded any mortgage default insurance (CMHC) premium. Uninsured qualifying criteria are limited to a 35% gross debt service (GDS) ratio and up to 30 years of amortization. Our examples use a 20% downpayment for uninsured mortgage transaction calculations. Unless otherwise indicated, a $100 monthly heating cost is attributed to the total monthly stress-tested payment. Municipal tax rates are the most recently shown on the applicable municipality’s website (1% used as default when unavailable or for a region with an unspecified mill rate). Mortgage default insurance is not permitted on purchases that have valuations of $1 million or more, amortizations exceeding 25 years, or on refinance transactions.
Regulatory Titles
In Ontario (FSRA), mortgage brokers and agents serve as the middle person between borrowers and lenders, helping clients find the most suitable mortgage options for their financing situation. A Mortgage Agent works under the supervision of a Mortgage Broker and assists in the mortgage application process. A Mortgage Broker may also be responsible for compliance requirements for their brokerage or a team.
The provinces of Quebec (AMF) and Newfoundland (Digital & Government Service NL) both exclusively utilize the designation of Mortgage Broker as a licensing designation.
British Columbia (BCFSA) has two distinct roles within the mortgage industry: the Submortgage Broker and the Mortgage Broker. These positions have specific responsibilities and functions that contribute to the overall process of securing mortgages for clients. The Submortgage Broker works under the supervision of a licensed Mortgage Broker and assists in various tasks, such as gathering client information, completing paperwork, and liaising with lenders. The Mortgage Broker oversees the entire mortgage application process, including assessing client needs, finding suitable mortgage options, negotiating terms, and ensuring compliance with regulations.
In Alberta (RECA) and New Brunswick (FCNB), the distinction between a Mortgage Associate and a Mortgage Broker lies in their roles and responsibilities within the mortgage industry. A Mortgage Associate typically works under the supervision of a Mortgage Broker and assists in the mortgage application process gathering necessary documentation, and providing support to clients. A Mortgage Broker is licensed to independently negotiate and arrange mortgage loans on behalf of clients, offering a more comprehensive range of mortgage options and expertise in the field.
In Saskatchewan (FCAA) and Nova Scotia (Government of Nova Scotia, Business Licensing), there are distinct roles for both Associate Mortgage Brokers and Mortgage Brokers. The critical difference lies in their level of experience and licensing requirements. Associate Mortgage Brokers work under the supervision of a licensed Mortgage Broker and are in the early stages of their career. They may assist with gathering client information and preparing mortgage applications. Mortgage Brokers have obtained the necessary qualifications and licences to operate independently and provide mortgage services directly to clients. They have the authority to negotiate mortgage terms, advise clients, and facilitate the mortgage process from start to finish.
In Manitoba (MSC), a Salesperson is primarily responsible for promoting and selling products or services, while an Authorised Official holds the authority to make legally binding decisions on behalf of the organization. These roles have different levels of authority and expertise, with the Salesperson focusing on sales and the Authorised Official having broader decision-making powers and acting as the liaison between the brokerage and the regulator.
For a complete list of licensing terms in Canada, please see the Mortgage Broker Regulators’ Council of Canada (MBRCC) published list.
nesto Mortgage Experts
Titles such as mortgage broker, mortgage agent, submortgage broker, mortgage salesperson, or principal broker are provincially regulated licensing terms with educational requirements specific to each province. Although they may all commonly be referred to as mortgage brokers, in Ontario, where mortgage agents are used as a designation, mortgage brokers or principal brokers have additional responsibility for compliance and training mortgage agents.
Licensed mortgage professionals often use the industry norm of “mortgage broker,” “broker,” or “advisor” to refer to themselves. However, disclosure requirements for licensed mortgage professionals’ titles vary across each province in Canada. These disclosures require mortgage brokers to adhere to specific rules when using titles to represent their qualifications and expertise. The provinces have regulations and guidelines that govern the use of titles by mortgage brokers. These regulations aim to ensure transparency and protect consumers in the mortgage industry.
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