Ontario Housing Market Report: January - June 2024
June 29, 2024
The first half of 2024 has been a significant transition for the Ontario housing market news update. With several variables impacting market dynamics, including changes in interest rates, inventory, and consumer tastes, the scene has demonstrated remarkable patterns and differences between cities. Using Mississauga, Toronto, Oakville, Brampton, Milton, and Burlington as its focus, this comprehensive report thoroughly examines the housing market performance from January to June 2024. Particular emphasis is placed on the bungalow market, which has demonstrated exceptional resilience in the face of more significant market swings.
The Canadian housing market, including Ontario, experienced a cooling phase in the first half of 2024. The Canadian Real Estate Association (CREA) reports that national home sales slightly decreased, with particular effects seen in the average prices and inventory levels.
Here’s an overview of the market from January to June 2024.
Month | Average Sold Price (CAD) | Monthly Change (%) | Yearly Change (%) | Transactions | Active Listings | SNLR (%) | Market Condition |
|---|---|---|---|---|---|---|---|
January | $705,312 | -0.3 | -2.1 | 39,204 | 124,619 | 31 | Buyer's Market |
February | $708,924 | +0.5 | -1.6 | 40,102 | 122,460 | 33 | Buyer's Market |
March | $711,891 | +0.4 | -0.9 | 41,303 | 120,015 | 34 | Balanced Market |
April | $710,087 | -0.3 | -0.7 | 40,201 | 118,462 | 34 | Balanced Market |
May | $699,117 | -0.6 | -4.1 | 37,401 | 115,802 | 32 | Buyer's Market |
June | $695,872 | -0.5 | -4.5 | 36,952 | 114,027 | 32 | Buyer's Market |
* All statistical information in the table has been obtained from Wowa.ca
National Sales Activity
- National home sales decreased consistently in May 2024 by 5.9% year over year and 0.6% less than in April.
From April to May 2024, the MLS® Home Price Index showed a little 0.2% drop and a 2.4% year-over-year drop.
Impact of Interest Rates on Canada’s Housing Market (Jan - Jun 2024)
- Affordability has been dramatically impacted by interest rate increases by the Bank of Canada, which have decreased demand for more expensive homes and shifted buyer attention to more reasonably priced options like bungalows.
- Though its impact is unknown, a recent rate reduction in June 2024 may boost sales activity in the year’s second half.
Inventory Levels
New postings increased; in May 2024, they increased 0.5% over April and by a significant 28.4% year over year. Rising inventories have given consumers additional choices and helped to stabilize prices.
Housing Market Analysis for Bungalows in Canada’s Top Cities
As the housing landscape evolves, these insights underscore the resilient demand and changing dynamics within Canada’s bungalow market.
Mississauga
Over the first half of 2024, Mississauga housing market has seen a modest dip in sales activity. This tendency is consistent with the state of the national market, which is affected by growing interest rates and the economy.
Buyer caution in the face of rising borrowing costs is reflected in the little drop in sales from January to June.
Still, Mississauga's bungalow market has held steady. Bungalows' practicality and affordability have maintained their demand, especially among young families and retirees seeking easily accessible and reasonably priced home options.
More options offered by increased inventory have also relieved the competitive pressure of earlier years.
Toronto
Sales activity in the Toronto homes market has declined more noticeably than in Mississauga. Rising interest rates and the high home prices in the city have severely tempered buyer excitement. Sales in May 2024 were far lower year over year than in May 2023, underscoring the general cooling trend. In Toronto, bungalows have remained popular even with the general market downturn.
Seniors and others looking for accessible living quarters are among the many consumers drawn to their comparatively cheaper price points and practical single-story designs.
More competitive pricing brought about by the rise in inventory has given consumers more options. It could help stabilize the market further.
Oakville
Sales activity in Oakville decreased in the first half of 2024 as purchasers went toward more reasonably priced homes in reaction to rising interest rates.
Due to the modest drops in property prices, the market has become more accessible, particularly for first-time buyers and young families.
Oakville bungalow demand has remained high because of its affordable and valuable designs. The increased number of new listings has increased market options and helped to stabilize prices. Many purchasers are still drawn to Oakville's bungalows because of their family-friendly appeal and inexpensive maintenance.
Brampton
Higher interest rates affecting buyer affordability have caused a downturn in sales activity in the Brampton property market. Because of the market's general state, sales in May 2024 were lower than in the same period in 2023.
Brampton prices have dropped slightly, especially in the higher-end market sectors. Their affordability and usefulness have sustained bungalow demand; prices have shown resilience compared to other home styles.
Buyers now have more options because of the increased supply of houses for sale in Brampton, mainly bungalows, which has helped to create a more balanced market.
Milton
Early in 2024, Milton's real estate market saw less sales activity, consistent with the more significant trend of fewer transactions brought on by higher interest rates.
As with national trends, sales in May 2024 decreased from previous months. Milton prices have dropped, which will help prospective purchasers afford the property.
A popular choice, bungalows continue to have steady pricing despite more significant market swings.
The more listings—especially in the bungalow category—have given buyers more options and supported price stability. Milton bungalows are still popular for young families and retirees looking for reasonably priced, helpful accommodation in a developing neighborhood.
Burlington
Recent interest rate increases have caused a drop in sales activity in Burlington during the first half of 2024.
May 2024 sales decreased over May 2023, consistent with general market trends. Burlington prices have held steady with only a few variations, keeping buyers interested. Because they are affordable and valuable, bungalows have been in demand despite general market difficulties.
A wide variety of consumers looking for accessible and reasonably priced homes continue to be drawn to bungalows in Burlington.
Market Outlook and Recommendations
The rest of 2024 will likely have constant or dropping prices in the Ontario housing market, continuing its moderation trend. With this stabilization, buyers have more chances to join the market without dealing with the fierce rivalry of earlier years. Bungalows' price and sensible design will make them more popular than other home styles. Their attraction to families looking for easily accessible living quarters, downsizers, and seniors will keep them attractive.
Within Ontario, market circumstances will change among cities and regions. Elements, including the state of the local economy, population trends, and housing availability, will influence market dynamics. Both buyers and sellers must be up to date on the state of the local market and get professional counsel.
Conclusion
The first half of 2024 has witnessed considerable modifications in the Ontario housing market, with noticeable patterns in sales, prices, and inventory levels across critical cities. While the market has cooled compared to the quick pace of past years, bungalows have demonstrated resiliency, driven by their affordability and practicality. Making wise real estate decisions in Ontario's varied and dynamic housing market will include staying current on changing market dynamics and consulting with professionals BungalowFinder.ca
