Ontario Quarterly Market Overview: Q1 2024

According to the latest Edge Realty report, Ontario is experiencing mixed trends as of the first three months of 2024. Some metrics show a change from the year-overyear trends.

Sales

The real estate market in Ontario experienced a significant increase in sales activity in the first quarter 2024. Sales increased by 12.4% quarter-over-quarter. Sales also increased by 6.8% year-over-year.

Listings

The number of new listings in Ontario’s real estate market experienced a decline of 3.8% in the first quarter of 2024 from the previous quarter. Despite the quarterly decrease, the comparison year-over-year shows a significant increase of 29,7% in new listings. 

Active listings, which is the total number homes for sale, also showed a similar pattern. There was a slight decrease of 3.7% quarter-over-quarter, with a more substantial increase of 24.8% in active listings year-over-year. 

Prices are a little higher than usual.

In Q1 2024, home prices in Ontario increased modestly by 0.5% compared to the prior quarter. Prices fell 0.7% on an annual basis. 

Under Construction

The number homes under construction dropped by 2.6% in the first three months of 2024 compared to the third quarter of 2023. The number of properties under construction increased by 0.4% year-over-year. 

Months of Inventory

The months of Inventory, which indicates the time it would take for all current listings to be sold given the current sales rate, decreased from 3.2 in Q4 2023 down to 3.1 in Q1 2020. 

Sales-to-New Listings Ratio

The ratio of sales compared to new listings fell from 52.2% at Q4 2023, to 48.7% at Q1 2024. This means that the rate of new listings began to outpace the pace of sales in the last quarter.

Other Economic Indicators

You can also find out more about the Population.

Ontario’s population grew by 0.7% in the first quarter of 2024, and by 3.5% year-over-year. OntarioThe growth rate is expected to continue, however, it will begin to slow down after 2024/25.

Unemployment Rate

The unemployment rate in Ontario increased by 6.7% between Q4 2023 and Q1 2024. For comparison, Canada’s unemployment rate was 6.1%In April 2024,

Mortgage Arrears

The rate of arrears on mortgages in Ontario increased slightly between Q4 2023 to Q1 2024, from 0.11% up to 0.13%. This quarter, the trend in financial distress among homeowners is rising, even if it is only slightly.