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 $781,500 in September 2025.
- The average selling price of a single-family home in Ontario decreased by 6.7% year-over-year to $866,200 in September 2025.
- The average selling price of a townhouse/multiplex in Ontario decreased by 7.4% year-over-year to $627,900 in September 2025.
- The average selling price of a condo in Ontario decreased by 8.8% year-over-year to $518,700 in September 2025.
- The average rent in Ontario decreased by 2.7% year-over-year to $2,316 for September 2025.
- October 18, 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 $781,500 for the month of September 2025, that’s decreased by 0.8% 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 $866,200 for the month of September 2025, that’s decreased by 0.8% compared to the previous month. On a year-over-year basis, single-family home prices in Ontario have decreased by 6.7% over the last 12 months.
Townhouse and Multiplex Prices
The average selling price of a townhouse in Ontario was $627,900 for the month of September 2025, that’s increased by 0.2% compared to the previous month. On a year-over-year basis, the price of a townhouse in Ontario has decreased by 7.4% over the last 12 months.
Condo Prices
The average selling price of a condo in Ontario was $518,700 for the month of September 2025, that’s decreased by 1.4% compared to the previous month. On a year-over-year basis, the price of a condo in Ontario has decreased 8.8% 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 September 2025 was $781,500, and it decreased of 6.7% compared to a year ago.
OREA indicates also reported a sales-to-new-listings ratio (SNLR) of 34%, indicating a Buyers in Ontario for September 2025.
Ontario Home Sales Increased by 7.3% YoY as Inventory Reached a 15-Year High
According to the Ontario Real Estate Association (OREA), the housing market in the province strengthened in September 2025, marking its most active September in 4 years. A total of 14,349 homes were sold through MLS Systems across the province, marking a 7.3% increase compared to September 2024. While home sales improved, they remained 2.6% below the 5-year average and 16.8% below the 10-year norm, showing that recovery is ongoing rather than complete. Nationally, home sales increased by 5.2% from last year, with Ontario contributing significantly to the national momentum.
Ontario Home Prices Eased Slightly as Record Supply Hit the Market
The average resale home price in Ontario was $828,896 in September, down 2.9% from last year. Year-to-date, the average price stood at $840,105, decreasing by 3.3% compared to 2024. By contrast, the national average price rose modestly by 0.7% to $676,154 compared to September last year. Total dollar volume for September reached $11.9 billion, up 4.2% compared to the same month last year, supported by the higher number of transactions.
Record Number of New Listings Across Ontario
Ontario saw 42,545 new listings in September, increasing by 8.5% compared to 2024 and setting a new record for the month. This total was 21.1% higher than the 5-year average and 23.9% higher than the 10-year average.
Active listings climbed to 74,201, up 12.8% year over year, marking the highest September level in more than 15 years. Compared to long-term trends, active listings were 45.1% above the 5-year average and 50.1% higher than the 10-year average. With months of inventory rising to 5.2 from 4.9 last year, considered well above the long-term average of 3.1, Ontario’s housing market continues to tilt toward buyers.
Regional Market Performance Across Ontario
Market performance varied widely across Ontario, with some regions seeing strong demand and others adjusting to slower conditions.
- Central Ontario: Home sales increased by 11% year over year to 5,982 units, while the average price was down 4.4% to $1,070,950. On a year-to-date basis, sales were down 8.1% to 51,555, and the average price decreased by 3.9% to $1,089,263. Central Ontario remains the province’s largest and most expensive housing market, though moderating prices have improved affordability slightly.
- Eastern Ontario: Home sales were up 4.2% to 1,806 units, and the average price increased by 0.7% to $629,273. Year-to-date, sales rose by 3.1% to 17,718, and prices increased by 2.8% to $643,513, reflecting steady demand supported by population growth and infrastructure expansion.
- Northeastern Ontario: Home sales decreased by 2.7% to 1,541 units, while the average price dropped by 8.3% to $757,812. Year-to-date, sales were down 11.6% to 12,104, and the average price fell 1.9% to $752,159. The region continues to face affordability challenges and slower economic activity.
- Northern Ontario: Home sales increased by 13.4% to 947 units, with the average price up 6.2% to $409,419. Year-to-date, sales grew by 6.9% to 7,122, and prices increased by 4.3% to $412,777. The north remains one of Ontario’s most affordable and fastest-growing regions by percentage.
- Southern Ontario: Home sales were up 9.5% to 2,295 units, while the average price decreased by 2.1% to $760,938. Year-to-date, sales were down 3% to 20,648, and prices declined 1.5% to $773,666. Areas such as London and Niagara have shown steady recovery after earlier market corrections.
- Western Ontario: Home sales increased by 2.2% to 1,778 units, and the average price decreased by 0.9% to $590,036. Year-to-date, sales rose slightly by 0.6% to 16,116, and prices declined by 0.4% to $599,202. New construction and steady demand have supported balanced conditions.
Market Conditions and Economic Outlook for Year-End
Ontario’s housing market continues to show signs of stabilization, with rising inventory providing more balance between buyers and sellers. Easing inflation and lower borrowing costs are also supporting renewed buyer confidence. The Bank of Canada’s recent rate cuts have helped alleviate mortgage pressure for many households. However, ongoing high inventory levels suggest that any price recovery will likely be gradual through late 2025 and into 2026.
For homebuyers, Ontario’s increased inventory provides more negotiating power and wider choice, particularly in mid-range price segments. If the Bank continues to reduce its policy rate in upcoming announcements, Ontario’s housing market could gain additional momentum as affordability improves, setting up a more stable environment heading into 2026.
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 14,349 during September 2025, that’s increased by 0.3% compared to the previous month. On a year-over-year basis, sales in Ontario have increased by 8.3% over the last 12 months.
New Listings
The number of new listings in Ontario was 42,545 during September 2025, that’s increased by 28.9% compared to the previous month. On a year-over-year basis, new listings in Ontario have increased by 9.6% over the last 12 months.
Real Estate Market
The sales-to-new-listings ratio (SNLR) in Ontario was 34% during September 2025, indicating a Buyers. On a monthly basis, that’s decreased by 22.1% compared to the previous month. Ontario’s yearly sales to new listings ratio has increased by 1.2% 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 $2,316 for the month of September 2025, which decreased by 2.7% on a year-over-year basis.
The average rent for a bachelor apartment in Ontario was $1,736 for the month of September 2025, which decreased by 5.3% on a year-over-year basis.
The average rent for a 1-bedroom apartment in Ontario was $2,063 for the month of September 2025, which decreased by 5.1% on a year-over-year basis.
The average rent for a 2-bedroom apartment in Ontario was $2,525 for the month of September 2025, which decreased by 3.6% on a year-over-year basis.
The average rent for a 3-bedroom apartment in Ontario was $2,063 for the month of September 2025, which decreased by 3.6% 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 $520.07 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!
