House Price Survey in Main Canadian Cities - Q2 2024
Overview
The latest Survey provides essential insights into the Canadian housing market. The national aggregate home price rose by 1.9% year-over-year in Q2 2024, reaching $824,300, with a 1.5% increase from the previous quarter. Despite recent interest rate cuts, buyers remain cautious, impacting market activity.
Regional Highlights
Greater Toronto Area
- Price Increase: 0.9% year-over-year to $1,190,600.
- Market Activity: Low spring sales, high new and active listings.
Greater Vancouver
- Price Increase: 3.9% year-over-year to $1,251,200.
- Market Activity: Cautious buyers, growing inventory levels.
Quebec City
- Price Increase: 10.4% year-over-year to $387,000.
- Market Activity: Strong demand, limited supply, affordable home values.
Calgary
- Price Increase: 7.9% year-over-year to $694,000.
- Market Activity: Demand outpacing inventory.
Ottawa
- Price Increase: 2.1% year-over-year to $777,400.
- Market Activity: Cautious buyers and sellers.
Economic Factors Influencing the Market
- Interest Rates: Bank of Canada’s recent 25-basis-point cut to 4.75% in Q2-2024 has not significantly boosted market activity.
- Construction: High borrowing costs and stifled new home construction exacerbate the housing shortage.
- Survey Insights: 51% of sidelined buyers would resume their search if interest rates reversed significantly.
Forecast
- National Year-End Forecast: Home prices expected to increase by 9.0% in Q4 2024.
- Regional Forecasts:
- Greater Toronto Area: +10.0%
- Greater Montreal Area: +8.5%
- Greater Vancouver: +5.5%
- Ottawa: +4.5%
- Quebec City: +9.5%
- Calgary: +8.0%
Conclusion
The Canadian real estate market remains influenced by economic factors such as interest rates and inflation. Real estate professionals must stay informed and adapt to these changing conditions to provide clients with the best possible advice and opportunities.
