Small and mid-sized cities are establishing themselves as new housing hotspots
Ontario’s housing affordability situation continues to be in dire straits, but traditionally, the strongest growth has been mostly limited to Toronto.
Historically, “buyers seeking more affordable options could stretch their dollars in a variety of locales, whether in the outer municipalities of the GTA, or in 18-hour cities in the eastern and southern reaches of the province,” Zoocasa said in its new market analysis.
However, recent spikes were observed in Ottawa, Whitby, and Windsor, markets where homes have sold for the highest sums over their list prices last month, Zoocasa said.
“The data reveals homes are selling for more than their listing price by the greatest percentage in small to mid-sized cities, where homes are listed on average under the $1-million mark,” Zoocasa said.
Read more: Ontario affordability situation highlights market weaknesses – RBC
For perspective, the average list price in Toronto last month was $1.191 million, while the average sales price was $1.107 million, amounting to a difference of -7.02%. The city’s sales-to-new-listings ratio stood at 56.09%
In Ottawa, the average list price in September was $523,842, while the average sales price was $669,874. This 27.8% gap was the largest in the province last month, accompanying a 68.5% SNLR.
Whitby came in second with a 16.4% gap between its $938,831 average list price and the $1.093 million average sales price. Windsor followed closely with its 16.3% difference between the $389,658 average list price and the $453,210 average sales price. The two markets’ SNLRs for September were at 75.3% and 62.1%, respectively.
Oshawa posted a 14.5% difference between its $732,499 average list price and $838,897 average sales price, along with a 78.3% SNLR. Ajax saw a similarly substantial 87.2% SNLR and a 13.3% gulf between its $920,323 average list price and $1.043 million average sales price.
