The Royal LePage Home Price Update and Market Forecast, distributed each quarter, includes price data and insights from experts in 63 real estate markets across the country, as well as national and regional forecasts.
After a stronger-than-anticipated first quarter, upward pressure on home prices is rising. Previously sidelined homebuyers are rebooting their purchase plans in anticipation of tight competition following an expected easing of interest rates later this year.
“Many consumers – particularly first-time buyers – who have the capacity to transact have accepted and adapted to the higher borrowing cost environment. Thus, the modestly-rising home prices we are experiencing today,” said Phil Soper, president and CEO, Royal LePage. “Once the central bank does make a move, and that first highly-anticipated cut to rates is made, even if it is only by 25 basis points, I expect we will see the price appreciation curve steepen upwards when the highly rate-focused crowd jumps into the market.”
Key highlights from the national release include:
- National aggregate home price expected to rise 9.0% year over year in Q4 of 2024 (up from previous forecast of 5.5%)
- Aggregate home prices in the greater regions of Toronto and Montreal expected to increase 10.0% and 8.5% year over year in Q4 2024, respectively, the highest forecasts of all major regions
- Royal LePage expects home prices in the Greater Toronto Area will surpass those in Greater Vancouver in 2024
- Among major regions, Calgary recorded highest year-over-year aggregate price appreciation (9.7%) for the second consecutive quarter; increased 1.9% on a quarterly basis
- 89% of regions in the report recorded quarterly price appreciation in the first three months of the year, ahead of the traditionally busy spring market period
