Home prices across many Ontario communities are continuing to fall, creating opportunities for buyers who may have been priced out just a few years ago.
A new study by digital real estate platform Wahi, using data from Real Property Solutions, shows that median prices for single-detached homes are trending downward in several southern Ontario markets. In Hamilton, the median price dropped five per cent in the second quarter to $665,000, while Toronto recorded a four per cent decline. Belleville and Oshawa each saw average prices fall by two per cent.
Nationally, detached home prices rose one per cent over the past year, but condominiums and apartments fell by seven per cent. In the Greater Toronto Area, condo values slipped due to a surge in supply from 2021 housing starts, coupled with high unemployment and lower immigration.
Wahi economist Ryan McLaughlin noted that regions that experienced rapid price growth during the pandemic, such as Hamilton, have seen a steady correction since 2022. “There’s been major double-digit declines in many of these areas,” he said.
Despite the softening market, demand remains. Toronto even saw a modest uptick in transactions last month, with more homes selling below asking price and properties staying on the market longer. Rental prices are also dropping, with a national year-over-year decline of 3.6 per cent and an even steeper 4.7 per cent fall in Toronto.
McLaughlin advised that while the conditions may seem favourable, the decision to buy should depend on long-term plans rather than short-term price swings. “It’s much more important to make sure this is the right product and the right city for you and your family,” he said. “If you’re staying for five to ten years, it’s OK if prices move around a little in the meantime.”