2018 was an interesting year for the Ontario housing market according to the Genworth Regional Risk Report that was released recently.
Nearly every municipality is experiencing a seller’s market at the moment, with the exception of Toronto and Barrie, both of which are the only balanced markets in the region.
Housing Market Breakdown
|# Sales % YoY||Price % YoY||S/L Ratio||Market|
This has lead prices to continue to rise steadily over the past year with London, Kingston, and Windsor leading the way with double digit year over year growth when combined with the reduced number of listings on the market.
Overall, the housing market is continuing on an upward trend despite price values declining over the past six months in some regions.
Average Home Prices Across Ontario
According to the data, the average price of a home in Ontario in 2018 was $570,234, 2% higher than it was at the same time in 2017.
“Home types with lower average price points have been associated with stronger rates of price growth over the past few months. Given the impact of the OSFI-mandated mortgage stress test and higher borrowing costs on affordability, it makes sense that the condo apartment and semi-detached market segments experienced relatively stronger rates of price growth in November, as market conditions in these segments remained tight or tightened respectively over the past year,”said Jason Mercer, TREB’s Director of Market Analysis
Depending on the market, the breakdown between condos and semidetached homes shows some of the impact the stress test introduced in January of 2018 has had.
In the Kitchener-Waterloo region, detached homes were priced at an average of $580,551, an increase of 13% over November 2017, while condos and semis were priced at an average of $361,177 (down 2%) and $416,878 (up 11%) respectively.
Sellers across the Province seem to be in a wait and see mode, wondering what’s coming down the pipe from the government, whether that be rising interest rates from the Bank of Canada or new mortgage regulations. The end result appears to be upward pressure on home prices going into 2019.
With unemployment at record low levels, 2019 may be an excellent time to put your house on the market.