Housing Market Ontario June 2023

Home prices in Canada’s housing market hit a snag in June 2023 as a Bank of Canada rate hike stunted demand and helped to push down home prices across the country. Canada’s average home price in June 2023 was $709,218, which is 3% lower than last month, yet 7% higher year-over-year.

That’s because Canadian home prices started declining in Spring 2022 after the Bank of Canada started to raise interest rates, with prices falling until late 2022. Higher interest rates make it more costly to borrow money, reducing demand for housing as the cost of mortgages goes up. Compared to last year, home prices in Canada are now 7% higher. The major housing markets of Ontario and British Columbia are seeing a similar annual increase in prices, even as prices fall on a monthly basis.

Nationally, there were 40,449 home sales during the month of June 2023. Canada’s MLS Benchmark Price, which measures the price of a “typical” home in Canada, was $760,600 in June 2023. That’s up 1% from last month. It’s also the fifth month in a row that the benchmark price has increased on a monthly basis. This streak might end after two rate hikes in June and July 2023.

Looking at Ontario, the average Ontario home price was $910,102 in June 2023, a 3% year-over-year increase but a decrease of 2% month-over-month. That’s the first time that the Ontario housing market has seen a positive year-over-year increase in its average home price in a year.

The average home sold price in the GTA was $1,182,120 for June 2023, representing an increase of 3% year-over-year but a decrease of 1% month-over-month. GTA home sales are up 16% year-over-year, with 7,481 transactions in June. That makes up close to 18.5% of all home sales in Canada this month.

Looking at other Ontario cities, Hamilton’s housing market saw average home prices decrease by 4% year-over-year, and Brampton home prices experienced a 5% annual increase in prices. Elsewhere in the GTA, Oshawa’s average home price is up 5% year-over-year. The average sold price in Mississauga increased by 2% over the past year, while Ottawa's housing market saw a 3% year-over-year decrease in home prices. London’s housing market had its average sold price decrease by 1.5% year-over-year.