Since the Bank of Canada began raising interest rates in 2022, home prices in Ontario have seen drastic declines from the peaks during the pandemic, however, most major cities in the province still have average home prices above the national average of $754,700. Notably, Toronto, Mississauga, Hamilton-Burlington, Guelph & District, Cambridge, and Kitchener-Waterloo all had average home prices in May 2023 above the national average, leaving prospective buyers to wonder where the affordable entry points into the Ontarian real estate market are.
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In order to find where the most affordable areas are in Ontario, Zoocasa compared the average home prices in May 2023 in 28 cities across Ontario and calculated the average monthly mortgage payment required for a home bought at the average price in each city.
Look North for Affordable Homes
In May 2023, the average home price in all of Ontario was $922,700 according to data from the Canadian Real Estate Association, and of the 28 cities analyzed, nearly all are below that number, showcasing how much of an impact the GTA real estate market has on influencing average prices. Not surprisingly, if you want to escape from these sky-high prices you’ll have to move out of the GTA and into more northern or eastern regions.
Sault Ste. Marie had the lowest average home price in all of Ontario at $287,600, a more than $100,000 difference from North Bay, the second most affordable city, and more than $600,000 cheaper than the provincial average. Even outside of Ontario, few cities have average home prices below $300,000, which makes Sault Ste. Marie stand out for its affordability. Based on the average home price, a homeowner in Sault Ste. Marie can expect to pay around $1,330 per month in mortgage payments – cheaper than average monthly rent payments in most cities.
With an average home price of $409,300 in May 2023, North Bay came in second for affordability. Of the five most affordable cities, North Bay also had the largest price drop from last year with the average home price decreasing by 10.1% from May 2022. The average monthly mortgage payment would be $1,893 for a home at the average price.
Sudbury is another affordable option for homebuyers who value both urban and rural living. The average home price in May 2023 was $451,000 and the average monthly mortgage payment totals $2,086. Following Sudbury are Bancroft and Area and Kingston and Area, with average home prices in May 2023 at $496,500 and $555,200 respectively.
Are you looking to get into the Ontarian real estate market? Give us a call! Our experienced real estate agents will help you find the right home for you.
