Ontario Housing Market Outlook 2025
Table of contents
Ontario Market Report Summary
- The average selling price of a home in Ontario decreased by 6.7% year-over-year to $787,500 in August 2025.
- The average selling price of a single-family home in Ontario decreased by 6.6% year-over-year to $873,000 in August 2025.
- The average selling price of a townhouse/multiplex in Ontario decreased by 8.4% year-over-year to $626,900 in August 2025.
- The average selling price of a condo in Ontario decreased by 8.2% year-over-year to $526,100 in August 2025.
- The average rent in Ontario decreased by 2% year-over-year to $2,330 for August 2025.
- September 30, 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 $787,500 for the month of August 2025, that’s decreased by 1% compared to the previous month. On a year-over-year basis, Ontario home prices have decreased 6.7% over the last 12 months.
Single-family Home Prices
The average selling price of a single-family home in Ontario was $873,000 for the month of August 2025, that’s decreased by 1% compared to the previous month. On a year-over-year basis, single-family home prices in Ontario have decreased by 6.6% over the last 12 months.
Townhouse and Multiplex Prices
The average selling price of a townhouse in Ontario was $626,900 for the month of August 2025, that’s decreased by 0.8% compared to the previous month. On a year-over-year basis, the price of a townhouse in Ontario has decreased by 8.4% over the last 12 months.
Condo Prices
The average selling price of a condo in Ontario was $526,100 for the month of August 2025, that’s decreased by 0.8% compared to the previous month. On a year-over-year basis, the price of a condo in Ontario has decreased 8.2% over the last 12 months.
We’re curious…
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 August 2025 was $787,500, and it decreased of 6.7% compared to a year ago.
OREA indicates also reported a sales-to-new-listings ratio (SNLR) of 43%, indicating a Balanced in Ontario for August 2025.
Ontario Housing Market Outlook Shows Sales Up 5% While Home Prices Slip 2%
According to the Ontario Real Estate Association (OREA) for August 2025, residential sales across the province totalled 14,299 units, up 5.2% from last year. Despite this gain, activity remained 7% below the 5-year average and 20.6% below the 10-year average for August. The average provincial home price fell 1.9% YoY to $804,985.
Ontario Sales Rise But Remain 20% Below Historical Norms
Year-to-date sales reached 110,901 units across Ontario, a 5.7% decline compared with the same period in 2024. While momentum is improving compared with last year, transaction volumes are still lagging historic levels, reflecting affordability pressures and cautious buyer sentiment.
- August sales: 14,299, up 5.2% annually
- Average provincial home price: $804,985, down 1.9% YoY
- New listings: 33,006, up 9% and the highest August level in 5 years
- Active listings: 71,411, up 15.4% YoY, and the highest August supply in more than a decade
Provincial Home Prices Average $805K With Regional Divergence
Home price performance varied widely across Ontario. Central Ontario saw the steepest price decline, with the average dropping 4.5% to $1,036,177. In contrast, Northern Ontario posted a 7.7% increase to $411,834, showing demand for more affordable markets.
- Central Ontario: average $1,036,177, down 4.5%
- Eastern Ontario: average $631,464, up 5%
- Northeastern Ontario: average $756,628, up 1.6%
- Northern Ontario: average $411,834, up 7.7%
- Southern Ontario: average $761,291, down 1.4%
- Western Ontario: average $593,244, down 0.7%
Inventory Climbs To Highest August Level In Over 10 Years
New listings rose 9% in August, reaching their highest level for the month in 5 years. Active listings surged 15.4% YoY to 71,411, the highest August inventory in more than a decade. Months of supply climbed to 5, up from 4.6 last year, well above the long-run average of 2.8 months. This shift indicates Ontario is firmly in a balanced-to-buyer-leaning market.
Ontario Among Hardest Hit Home Price Corrections
RBC Economics reported that Ontario remains one of the most affordability-challenged provinces, with high inventory continuing to weigh on values. Local MLS Home Price Index (HPI) data show continued year-over-year declines in Toronto and Hamilton, keeping provincial averages under pressure.
Build Canada Homes To Deliver New Units In Ontario
The federal Build Canada Homes program will bring new affordable housing supply to Ontario, including major projects in Ottawa and Toronto. The $13 billion initiative aims to add 4,000 affordable homes nationwide through modular and factory-built methods, with Ontario expected to see early construction activity in 2026.
Mortgage Impact For Buyers and Sellers in Ontario
- Buyers benefit from more choice and greater negotiating power as listings surge. First-time buyers may find opportunities in Eastern and Northern Ontario, where prices are still rising but remain more affordable compared with the GTA.
- Sellers must adjust expectations, particularly in Central Ontario markets where prices have dropped sharply. Overpricing risks extending the time that their property sits on the market.
- Mortgage holders may find relief ahead. The Bank of Canada is widely expected to further ease monetary policy, which could reduce borrowing costs for those looking to renew and refinance their mortgage. Those with variable mortgages or lines of credit may experience the most significant impact.
Ontario’s housing market is regaining momentum in sales but remains under correction in pricing. Elevated supply and vast regional differences are reshaping opportunities across the province, setting up a more competitive but potentially more accessible market heading into the fall.d remains resilient, encouraging a cautious approach to rate cuts to avoid fuelling further price pressures.
Red hot rates impacting your housing market experience?
With nesto, you can get a low rate with a 150-day hold.
Month-over-Month Expectations for Ontario’s Housing Market
Transactions – Number of Sales
The number of sales in Ontario was 14,299 during August 2025, that’s decreased by 12.5% compared to the previous month. On a year-over-year basis, sales in Ontario have increased by 6% over the last 12 months.
New Listings
The number of new listings in Ontario was 33,006 during August 2025, that’s decreased by 18.5% compared to the previous month. On a year-over-year basis, new listings in Ontario have increased by 10.6% over the last 12 months.
Real Estate Market
The sales-to-new-listings ratio (SNLR) in Ontario was 43% during August 2025, indicating a Balanced. On a monthly basis, that’s increased by 7.3% compared to the previous month. Ontario’s yearly sales to new listings ratio has decreased by 4.1% 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 $2,330 for the month of August 2025, which decreased by 2% on a year-over-year basis.
The average rent for a bachelor apartment in Ontario was $1,760 for the month of August 2025, which decreased by 4% on a year-over-year basis.
The average rent for a 1-bedroom apartment in Ontario was $2,077 for the month of August 2025, which decreased by 5% on a year-over-year basis.
The average rent for a 2-bedroom apartment in Ontario was $2,538 for the month of August 2025, which decreased by 4% on a year-over-year basis.
The average rent for a 3-bedroom apartment in Ontario was $2,077 for the month of August 2025, which decreased by 4% on a year-over-year basis.
Red hot rates impacting your housing market experience?
With nesto, you can get a low rate with a 150-day hold.
How Does Renting Compare with Homeownership in Ontario?
Each $100,000 in mortgage balance costs an average of $520.08 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
We’re curious…
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.
Why Choose nesto
At nesto, our commission-free mortgage experts, certified in multiple provinces, provide exceptional advice and service that exceeds industry standards. Our mortgage experts are non-commissioned, salaried employees who provide impartial guidance on mortgage options tailored to your needs and are evaluated based on client satisfaction and advice quality. nesto aims to transform the mortgage industry by providing honest advice and competitive rates using a 100% fully digital, transparent, seamless process.
nesto is on a mission to offer a positive, empowering and transparent property financing experience – simplified from start to finish.
Contact our licensed and knowledgeable mortgage experts to find your best mortgage rate in Canada.
Ready to get started?
In just a few clicks, you can see our current rates. Then apply for your mortgage online in minutes!
