The real estate landscape in Ontario is expected to experience notable price increases in 2025, according to the Re/Max Canada 2025 Housing Market Outlook report. After a period of heightened interest rates, the market is poised for a recovery, fuelled by a series of Bank of Canada interest rate cuts. This shift is likely to boost sales and drive up home prices across Ontario, as the market becomes more active and competitive.
Price Predictions for Ontario Cities in 2025
Across the province, Ontario’s housing market is expected to see price increases in many cities and regions. The report suggests a national average home price hike of five per cent in 2025, with some areas in Ontario seeing even higher jumps.
Here’s a breakdown of the price expectations for several key cities:
Mississauga: The average home price in 2023 was $1,068,367, but it dipped slightly to $1,065,923 in the first half of 2024. By 2025, prices are expected to rise by six per cent to $1,129,878.
Brampton: Home prices are predicted to increase from $1,011,915 in early 2024 to $1,072,630 by 2025.
Durham Region: Average prices could rise from $923,521 to $969,697 by 2025.
Hamilton: Prices are expected to climb from $810,093 to $828,320 in 2025.
Burlington: A price increase of 4.5% is forecast, pushing the average price from $1,132,823 to $1,183,800.
Toronto: Despite a shortage of affordable housing, Toronto will see a slight price increase of just 0.1%, largely due to low inventory.
Other regions across Ontario will also see various price increases:
Niagara: +2%
Hamilton: +2.3%
Ottawa: +2.5%
Sault Ste. Marie, Thunder Bay, Muskoka, and Haliburton: +3%
Kawartha Lakes: +4%
London and Burlington: +4.5%
Peterborough, Sudbury, North Bay, Durham, Kingston, York Region: +5%
Kitchener-Waterloo, Mississauga, Brampton: +6%
Simcoe County: +10%
What’s Driving the Market?
The report highlights a shift in the market driven by recent changes in monetary policy. With the Bank of Canada reducing interest rates, prospective homebuyers are getting a much-needed reprieve from the high mortgage rates that have characterised the past few years. This, combined with changes to the mortgage stress test, is expected to boost market activity, particularly among first-time homebuyers.
First-time buyers are showing increased confidence, with a Leger survey commissioned by Re/Max Canada finding that 81% of regions expect this demographic to be the main driver of housing demand in 2025. Additionally, 47% of Canadians are prioritising homes in areas less likely to be impacted by climate change, indicating a shift toward sustainability in homebuying decisions.
Sellers’ Markets and Housing Shortages
The Re/Max report also anticipates that 44 regions across Canada will become sellers’ markets, meaning that demand for homes will outstrip supply. In these markets, homes typically sell quickly, and prices tend to rise as buyers compete for limited inventory.
Ontario will see a mix of sellers’ and balanced markets. For instance, Sudbury, North Bay, Simcoe County, York Region, Windsor, Kenora, and Thunder Bay are expected to experience strong sellers' conditions. Meanwhile, Peterborough, Kawartha Lakes, Burlington, Hamilton, Muskoka, and Haliburton may see more buyer-friendly environments, with Niagara expected to experience both buyer’s and balanced market conditions throughout the year.
Looking Ahead
Overall, the Ontario real estate market in 2025 is set to see a period of recovery, with price increases anticipated across many cities and regions. While affordability challenges remain, the combination of interest rate cuts, a more active market, and a growing number of first-time homebuyers are likely to push prices upward. For those looking to enter the market, now may be the time to make a move, especially as inventory remains limited and competition rises.
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