Real estate in Ontario: +19,7% on prices despite Covid-19 crisis

A 19,7% increase in real estate in Ontario

Despite an unprecedented economic crisis due to Covid-19 pandemic, Ontario's housing market is not slowing down. Ontario's real estate prices increased faster between September 2019 and September 2020 than in the whole country (19,7% vs 17,5%) - which proves Ontario's housing market dynamism despite the gloomy circumstances of the Covid-19. Some reasons can be put forward:

• Demand has accumulated during lockdown, while transactions were blocked
• Ultra-low interest rates

What are the 10 most expensive cities in Ontario for real estate?

Here below are ten cities where real estate prices are the highest in Ontario. Without surprise, we can observe that the great majority of them (except Ottawa) are located near Greater Toronto:

Ottawa, the second largest city, but far and away in the ranking of most expensive cities

As a dynamic city and Ontario's second city in terms of population, Ottawa is 'only' the 10th most expensive area in the province for real estate.However, prices in Ottawa are growing fast since 2006. Its average real estate price in 2005 was $226,600, and it has now raised $529,900 in September 2020, more than doubling in 15 years!

Indeed, from the 10 most expensive cities in Ontario, Ottawa is the one where real estate prices have grown faster over the past year (September 2019 to September 2020) - with an average 22% increase in transaction prices.

Real estate prices increase in Ontario per county: overview

Record figures were almost reached just before the Covid crisis, in February 2020, when sales jumped by 26.9% in comparison with February 2019. However, the crisis seems not to have stopped that dynamism. On the contrary. The real estate market is in better shape than ever, with ever-increasing prices all around Ontario:

Real estate in Ontario: a prospective over the last decade (2011-2021)

Here below is the real estate trend over 10 years in Ontario from January 2011 to an anticipated beginning of year 2021, in 5 areas: Guelph & District, Hamilton-Burlington, Kitchener-Waterloo, Mississauga, Oakville-Milton and Ottawa. It shows that the increasing trend of real estate prices is not new - even if it seems to accelerate for a few years.

Indeed, Ontarios' real estate keeps increasing since 10 years, showing that the province is an attractive and radiant region, with indicators in green and investment healthy.

Where do Ontario’s real estate rank in comparison with other provinces?

Even if Ontario is known to be a fairly expensive area for real estate, it is not the most expensive in Canada when it comes to buying a house. Indeed, as of September 2020, with an average real estate transaction being in average $741,395, Ontario's prices are $ 60,000 than the average real estate price in British Columbia - which is the most expensive province in Canada.

However, we can see that prices in Ontario are way above the Canadian average - the average cost of a transaction in this province being $137,000 above the national number. In comparison, it is almost twice more expensive to buy a house in Ontario than in Quebec - two neighboring provinces. Obviously, the city of Toronto and its surroundings are responsible for the real estate prices to be so high, concentrating great parts of the province's economy, jobs and population.

Antoine Fruchard, insurance expert and Chief Director at Hellosafe.ca

While the year 2020 already represents a dark period for Ontario and Canadian economy as a whole, the real estate market seems more than ever a safe haven. Indeed, while the springtime lockdown has forced a majority of citizens to stay at home, an awareness of the importance of having a pleasant home in has been born. In fact, far from falling, transactions continued to increase, in line with previous years. As for property prices, they do not seem to be in crisis, and continue to rise despite the gloomy circumstances of the moment. Thus, there is a good chance that investors will continue to put their money in stone in the years to come.

Our methodology

Please note that the above-mentioned information is accurate at the date it is published. All our studies are based on reliable information sourced from public and privates organization. For further information on our editorial guidelines please click here.

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