Trade association predicts increase in sales and prices
Following a period of cooling influenced by the Bank of Canada’s interest rate hikes, the Canadian housing market is poised for a rebound, according to the latest forecast by the Canadian Real Estate Association (CREA).
In its quarterly update, CREA reports that residential property sales across Canada are expected to see a notable rise in the coming years, spurred by changes in interest rates. Following a quiet phase instigated by rate increases last summer, the market has shown signs of revitalization with an anticipated reduction in rates.
According to CREA, March 2024 witnessed a flurry of activity in the housing sector, beginning with an uptick in new listings and culminating in a surge of sales at the month’s end. Early April followed suit, presenting a considerable increase in property listings. The trade association noted such movements suggest a market that is preparing for growth.
Positive outlook for the housing sector
According to CREA’s statistics, approximately 492,083 residential properties are expected to be sold through Canadian MLS® Systems in 2024, marking a 10.5% increase from 2023. This forecast aligns closely with previous projections.
Looking ahead to 2025, national home sales are projected to escalate further by 7.8% to 530,494 units. This growth is anticipated as interest rates are forecast to decline, moving towards more stable, “neutral” levels.
Alongside rising sales, home prices are also expected to climb. The national average home price is forecasted to increase by 4.9% to $710,468 in 2024. The upward trend is expected to continue into 2025, with prices rising by approximately 7%, reaching an average of $760,120.
CREA typically updates its forecast via Multiple Listing Service® (MLS®) Systems of Canadian real estate boards and associations. The next forecast is expected to be published on July 12.
CREA is a large single-industry association, representing over 160,000 REALTORS® nationwide. It aims to contribute to the economic and social well-being of communities across Canada and advocates for property owners, buyers, and sellers.
