Last Updated on July 5, 2024 by CREW Editorial
In May 2024, Ontario’s real estate market exhibited a significant downturn in residential sales activity, as reported by MLS® Systems. A total of 17,871 units were sold, for a significant 16.3% drop from May 2023. This figure also fell 11.2% below the five-year average and 21% below the ten-year average for May.
Sales
Cumulatively, from January to May 2024, home sales reached 72,907 units, a slight decrease of 1.2% compared to the same period in 2023. On a national scale, home sales in May 2024 experienced a moderate decline of 5.9% compared to the previous year.
Prices
The average resale price of residential homes in Ontario for May 2024 was $890,634, representing a 3.7% drop from May 2023. The year-to-date average price for the first five months of 2024 stood at $879,940, down marginally by 0.8% from the previous year. Nationally, the average home price decreased by 4% year-over-year to $699,117 in May 2024.
Listings and Inventory
On the other hand, the real estate market saw a surge in new listings. There was an 18.9% increase for May 2024 over the previous year. These new listings were 16.8% above the five-year average and 7.6% above the ten-year average for May. Additionally, the number of active residential listings soared to 58,156 units by the end of May – a huge jump of 63.9% over May 2023. These figures passed the five-year average by 54.9% and the ten-year average by 23.2%.
Months of inventory rose to 3.3 months by the end of May 2024, up from the 1.7 months recorded in May 2023.
Unemployment
In the broader economic context, Ontario’s unemployment rate stood at 6.8% as of May 2024, a slight increase of 0.1% from April. However, this rate was still 6% lower than the peak seen in June 2020. The province saw an addition of 13,300 full-time jobs in May, along with a gain of 20,300 part-time positions. Full-time employment remained 4,600 jobs below an October 2023 peak, but was 35,600 jobs over a low point in March 2024.
Consumer Confidence
According to the Conference Board of Canada, consumer confidence in Ontario saw a slight dip in June 2024. Sentiments about job prospects over the next six months were more pessimistic, although there was a slight rise in respondents expecting their household financial situation to improve. Feelings of uncertainty about making major purchases continued, with more people unsure about the timing of such investments.
