Home price increases expected in these Ontario cities in 2025: report

Canada’s national average home price will likely increase by five per cent in 2025 and many Ontario cities should expect price boosts, according to a new report.

A more active real estate market is expected in 2025 following the series of Bank of Canada interest rate cuts, according to the Re/Max Canada 2025 Housing Market Outlook report.

Housing sales are anticipated to rise in 33 of the 37 regions surveyed, with increases up to 25 per cent, the report stated.

“While affordability challenges persist, the sequential interest rate cuts and changes to the mortgage stress test are a much-needed reprieve for those looking to get into the market,” said Christopher Alexander, president of RE/MAX Canada.

“The current environment is more encouraging than it has been in the past few years, especially for first-time homebuyers. However, a boost in sales, coupled with limited inventory, almost always leads to rising prices, which is the trend we’re expecting to see materialize in virtually all Canadian housing markets.”

First-time homebuyers are showing renewed confidence in the market, according to a Leger survey commissioned by Re/Max Canada. Re/Max brokers and agents in 81 per cent of regions surveyed noted that first-time homebuyers were the key demographic anticipated to drive market activity in 2025.

The survey also found 47 per cent of Canadians (up by 14 per cent from 2024) prioritize residential properties and areas that are less likely to be impacted by climate change.

The overall average residential sales price is expected to increase in Ontario.

In Mississauga, the average home price was $1,068,367 in 2023 and it dropped slightly to $1,065,923 in the first half of 2024. Re/Max predicts the price will increase by six per cent to $1,129,878.40 in 2025.

Brampton prices will also increase from $$1,011,915 in the first half of 2024 to $1,072,629.90 in 2025.

Durham Region’s average could go from $923,521 to $969,697.10 in 2025.

In Hamilton, prices could go from $810,093 to $828,320.10. In Burlington, prices are expected to rise from $1,132,823 to $1,183,800.

Due to low supply and lack of affordable housing, Toronto expects a slight price increase of 0.1 per cent.

Prices are expected to increase by two per cent in Niagara; 2.3 per cent in Hamilton; 2.5 per cent in Ottawa, and Kenora: three per cent in Sault Ste. Marie, Thunder Bay, Muskoka, and Haliburton; four per cent in Kawartha Lakes; 4.5 per cent in London and Burlington; five per cent in Peterborough, Sudbury, North Bay, Durham, Kingston, and York Region; six per cent in Kitchener-Waterloo, Mississauga, and Brampton; and ten per cent in Simcoe County.

The report also found 44 regions across Canada will become sellers’ markets, meaning there are more buyers than there are homes for sale. Homes tend to sell quickly in a seller’s market and prices rise.

The majority of regions (36 per cent) are expected to be balanced markets in Ontario including Kitchener-Waterloo, Toronto, Brampton, Mississauga, Durham, Kingston, Ottawa, and Sault Ste. Marie.

There are sellers’ markets expected in Sudbury, North Bay, Simcoe County, York Region, Windsor, Kenora, and Thunder Bay.

Meanwhile, Peterborough, Kawartha Lakes, Burlington, Hamilton, Muskoka, and Haliburton are expected to be buyers’ markets. Niagara is expected to experience both buyers’ and balanced conditions throughout 2025.

See the full report here.