Canadian Real Estate is regaining momentum following a 3.7% rise in national home sales, driven by a strategic interest rate cut by the Bank of Canada.
Muted Rate Cut Forecasts Could Influence Buyer Decisions
- Expectations for interest rate cuts have been lowered due to a surge in properties.
- Low buyer activity and consumer sentiment persist.
- Gradual interest rate reduction expected to attract buyers.
- Sluggish spring market and rising supply have led to downward revisions in sales and average home price projections.
Listings Up 26% from Last June, Still Below Historical Average
- 472,395 properties expected to be sold, 6.1% increase from 2023.
- Total average home price projected to rise by 2.5% to $694,393.
- Home sales forecasted to increase by 6.2% to 501,902 units in 2025.
- National average home price expected to rise by 5% to $729,319.
- By June end, 180,000 properties listed, a 26% improvement from the previous year.
Inventory Buildup Slows, Signaling Balanced Market Conditions Ahead
- New listings increased by 1.5% month-over-month.
- MLS Home Price Index edged up by 0.1% from May 2024.
- HPI down 3.4% year-over-year.
- National average sale price decreased by 1.6% compared to June 2023.
- End-of-June property supply up by 26% but below historical average.
- National sales-to-new listings ratio improved to 53.9% in June, approaching long-term average.
Housing Prices Show Volatility
- Regional Housing Prices & Non-Seasonally Adjusted National Composite MLS HPI
- Calgary, Edmonton, Saskatoon, Montreal, and Quebec City’s prices have seen upward trajectory since early 2023.
- Ontario and Nova Scotia also saw recent price increases.
- Non-seasonally adjusted National Composite MLS HPI remains 3.4% below June 2023 levels.
- National average home price in June was $696,179, down 1.6% from the previous year.
Canada’s housing market is optimistic, with a projected 6.1% increase in sales this year and 2025.
However, future growth depends on overcoming challenges and managing supply-demand relationships.