These Ontario cities currently have the most and least competitive real estate markets
Published Friday, November 18, 2022 2:28PM EST
Last Updated Friday, November 18, 2022 2:28PM EST
A new report has ranked which Ontario cities have the most and least competitive real estate markets this year.
Zoocasa, a Canadian real estate website, analyzed and compared the market competition among 34 cities and regions across the province by looking at the sales and new listing data from October.
In doing this, it determined the sales-to-new-listing ratio (SNLR) for that month, which represents the total sales divided by the number of new listings in the area. Zoocasa says this “effectively” shows the supply and demand levels in each region, and can point out how much competition local buyers face.
It’s then divided into three different markets: buyer’s, balanced, or seller’s market.
A buyer’s market – when buyers have more listings to choose from – has an under 40 per cent SNLR and a seller’s market – where demand surpasses the supply – is over 60 per cent.
All 19 cities in the Greater Toronto Area (GTA) are reported as balanced markets, meaning the demand and supply are balanced.
Toronto boasts a 54 per cent SNLR, Mississauga a 53 per cent SNLR, and Brampton a 51 per cent SNLR. Last year, all three spots were highly favourable to sellers.
Outside of the GTA, Zoocasa notes only six places are not in a balanced market territory.
Niagara Falls is currently the only city with a sellers market, with a 29 per cent SNLR and an average home price of $640,000. Last year, the border city was a seller’s market with an 82 per cent SNLR.
Sault Ste. Marie, Thunder Bay, North Bay, Sudbury, and Guelph are seller’s markets, which means the demand surpasses supply. Guelph is the only city among the five with average home prices sitting at over $700,000 on the market.
The affordability in these cities is what draws buyers in, Zoocasa says, especially since interest rates are so high.
Zoocasa notes housing competition has cooled in the GTA. But, if the Bank of Canada implements another rate hike in December, the market could favour sellers again.