Q2 House Price Survey released

Royal LePage releases its Q2 2024 House Price SurveyRecently, which presented key trends on the Canadian real estate markets. Notably, the aggregate national home price increased by 1.9% year-overyear, reaching $824.300, and by 1.5% quarter-overquarter. 

Despite the Bank of Canada’s 25 basis point cut in overnight lending rates in June, buyers have not returned to the market immediately as expected. Royal LePage’s survey indicated that a significant number of buyers are waiting for more substantial cuts.

The national average home price is still significantly higher than pre-pandemic levels. This represents a 30.8% rise compared to the same time period in 2019. The report suggests the market is returning back to normal. Canadian residential real estate values have increased at a rate of 6% per annum over the past five-year period.

A rise in borrowing costs has also slowed construction of new homes. Builders are having difficulty financing new projects. This is affecting supply during a time when population demand is growing. Both buyers and builders could benefit from a gradual rate reduction. This shortage of new construction could lead to increased rental demand, and higher rental income.

You can also find out more about the following: Canada Mortgage and Housing CorporationThe number of housing starts nationwide increased slightly in May, however the construction rate remains below what is required to meet demand. Developers are finding it more difficult to launch new housing projects due to higher borrowing costs and labour shortages. This is contributing to the current housing crisis.

Regional Breakdowns

The price growth is occurring amidst a period of slower market activity in some of the country’s most expensive regions.

Toronto and Vancouver have experienced slower than usual activity this spring. Inventory levels are also rising. In contrast, in the prairie provinces of Canada and Quebec, demand continues outpacing supply. Quebec City, specifically, had the highest aggregate price increase year-overyear among major regions in Q2 2024, at 10.4%.

For key municipalities in Q2 of 2024:

• The Greater Toronto Area’s (GTA) aggregate home price increased by 0.9% over the past year, reaching $1.190,600. The sales activity was unusually low, and the majority of price appreciation occurred in the first quarter. In Toronto, home prices decreased modestly by 0.5% year-over-year but rose 4.8% quarter-over-quarter.
• In the Greater Montreal Area the aggregate home price has increased 4.8% over the past year to $599,000. 
• Greater Vancouver saw a 3.9% increase in the average home price year-over-year, which reached $1,251,200. The market remains below the ten-year median, with inventory levels increasing and keeping conditions in balance.
• Ottawa’s housing market saw a 2.1% year-over-year increase in the aggregate home price, reaching $777,400. 
• Quebec City had the highest price appreciation of all major markets. The aggregate home price increased by 10.4% over the past year, reaching $387,000. This growth continues to be driven by strong demand for homes and affordable values in comparison to other regions.
• Calgary’s housing market saw a 7.9% year-over-year increase in the aggregate home price, reaching $694,000. Inventory levels remain low despite the recent rate reduction.
• In Edmonton, the average home price rose 3.7% over the past year to $450.600. Sales remain high, with only low supply levels limiting the activity.

Royal LePage maintains its national year-end forecast, predicting a 9.0% increase in home prices in Q4 2024 compared to the same period last year – this suggested growth would be a positive sign for the real estate market.

The full report, including regional breakdowns, is available on the Royal LePage site.