The Ontario real estate market saw steep growth in 2021, making it difficult for first-time home buyers to secure a property. Bidding wars were common with rising competition across the province, including smaller cities. If you were one of the many prospective first-time buyers who exited the market unsuccessfully last year, consider re-launching your home search this fall. Prices have been stabilizing throughout the spring and early summer market making this a great opportunity for first-time home buyers to start looking again. Here are some of the most affordable areas to buy a home in Ontario as of June 2022.
The Top Four Most Affordable Cities In Ontario In June 2022
Thunder Bay, Ontario
- Average price in June: $358,051
- Annual change: 12.5%
- Home sales: 265 (up 6.4% year-over-year from 249)
Thunder Bay is a city on Lake Superior in the northwestern part of Ontario. It’s often referred to as the “Canadian Lakehead” due to its location at the northern tip of the Great Lake. While forestry and manufacturing have long played an important role in the city’s economy, it has become known more recently for its “knowledge economy” based on research and education. Sales have still seen an increase in the area since June 2021, but as interest rates continue to climb the average price dips as the interest rates increase. The price of a home is $358,051, much lower than the national average benchmark price of $807,400. Thunder Bay is currently the most affordable city in Ontario to buy a home in.
Sudbury, Ontario
- Average price in June: $454,100
- Annual change: 21.4%
- Home sales: 327 (-15.3% year-over-year from 366)
Sudbury is near the Ramsey Lake waterfront and is a thriving urban centre with major attractions, cultural celebrations and good access to the great outdoors. There are 330 lakes and dozens of accessible nature experiences within the city, as well as museums, galleries and annual festivals celebrating their history and multicultural diversity. Sudbury has seen a large growth in price since this time last year, but as the interest rates climb, prices are growing more moderately and in some cases are dipping. The current average price of a home is $454,100, down 1.8% from May, and down 3.2% from March. The average detached home in the area would cost $453,900, almost half of the national average benchmark price.
London & St. Thomas, Ontario
- Average price in June: $650,300
- Annual change: 10.3%
- Home sales: 730 (-38.3% year-over-year from 1,183)
London and St. Thomas are two areas in Southwestern Ontario. London is a rich area with a diverse culture and community, which can be expected to continue growing and evolving. St Thomas is just a 30-minute drive away, and is often referred to as the “Railway Capital of Canada”, and is appreciated for its vibrant heritage, beautiful trails and friendly community. The area has seen a decline in the number of sales over the past year, as a result of the rising interest rates and less competition from other buyers in the current market. Buying in the area is a little less expensive than the national average, with the average price of a home totalling $650,300. Buying a condo apartment is the most affordable option in the area, with an average price of $425,900. Detached homes, on the other hand, are in higher demand and averaging $689,000. Properties in this area are a more affordable option compared to cities in the Greater Toronto Area, and many first-time home buyers have been moving into this market.
Ottawa, Ontario
- Average price in June: $688,200
- Annual change: 83%
- Home sales: 1,529 (-26.8% year-over-year from 2,148).
The Canadian capital city, Ottawa is a vibrant and youthful city with two large universities dominating the city centre. As the capital, it boasts some beautiful architecture, a thriving downtown core and a diverse range of interesting and unique neighbourhoods both downtown and in surrounding suburbs. Although homes in the downtown core tend to be priced quite high, many of the surrounding boroughs are more affordable and have bus routes and light rail transit that can bring homeowners right to the downtown core. While the average price of a detached home is $786,200, a condo townhouse has an average price of $551,100 and a condo apartment is $458,800. Ottawa provides a unique opportunity for any home buyer, as it offers the perfect mix of downtown attractions and more affordable buying opportunities surrounding the city centre.
Bottom Line
Finding your first home should be an exciting experience and with the right resources and expertise, the journey can be enjoyable. If you’re a prospective home buyer ready to secure a property, contact an experienced real estate agent to discuss your goals and help you navigate the changing real estate markets across Ontario. Download Zoocasa’s free Buyer’s Guide for everything you need to know about the home purchase journey including information about searching for a home, making offers, and preparing for closing day.
