Home prices in Canada to rise this year, Royal LePage says

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Overall home prices nationwide rose again in the second quarter and are expected to rise further by the end of the year, real estate firm Royal Le Page reported.

The average home price in Canada rose 1.9 per cent year-over-year to $824,300 in the second quarter of 2024, up 1.5 per cent from the first quarter, according to a housing price survey released Thursday by Royal LePage.

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The increase comes despite slowing activity in the country’s most expensive markets. Toronto and Vancouver reported slower-than-usual market activity in the spring as inventory built up.

Overall home prices nationwide remain well above pre-pandemic levels, with the second quarter showing a 30.8 percent increase compared to the same period in 2019, Royal LoPage said.

Among the major regions, Quebec City recorded the highest overall price increase year-on-year, at 10.4 per cent.

“Nationally, home prices have risen while the number of properties purchased and sold has fallen, an unusual dynamic,” said Phil Soper, CEO of Royal Le Page. “The Canadian housing market is struggling to find a steady rhythm, as the past three months have clearly shown.”

Super noted that inventory levels in many areas have risen significantly, which he described as the closest to a balanced market in several years.

Sales activity in the Greater Toronto Area has been unusually low this spring, said Karen Yolowski, CEO of Royal Le Page. Almost all of the region’s price increases occurred in the first quarter, followed by a near-flat streak.

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She said new listings were up double digits compared to last year, and active listings were the highest they had been in more than a decade.

UlevskI aDrDrHDr this actionIFifthIIt was slow.Dr In all sectorsDr a houseIng types, not only IIn the resale market, however, In before constructionIlike that.

Despite the Bank of Canada’s move to cut its overnight lending rate last month, buyers did not immediately return to the market as initially expected, Royal-Le Page said.

When the first rate cut came in early June, “the market response was tepid,” Super said, adding that the quarter-point cut did little to improve the affordability picture.

The company added that further interest rate cuts are needed to increase purchasing power and improve consumer confidence. Lower prices mean lower monthly payments, opening upINanogram DrTo some familiesItoIHe is the formerIIt was completely closed from the market.

Earlier this year, a survey conducted by Leisure on behalf of Royal LePage found that 51% of marginal homebuyers said they would resume their search if interest rates reversed.

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“Once consumers regain the confidence to re-enter the market — likely after several more rate cuts — this increase in supply will be a welcome improvement in market conditions,” Yulefsky said.

Royal Lopage maintained its national year-end forecast, with prices expected to rise by nine percent in the fourth quarter of 2024 compared to the same quarter last year.

Nationally, the company expects home prices to continue to rise moderately throughout the second half of the year.

• e-mail: dpaglinawan@postmedia.com

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