Canada Home Prices Set to Rise 4.9% in 2024 as Sales Surge

According to the latest report from CREA, Canada's housing market is expected to see a 4.9% increase in home prices next year, fueled by a recent uptick in sales.

The Canadian Real Estate Association has revised its outlook for the national housing market, now predicting a 4.9 per cent annual increase in the average home price to $710,468. This forecast represents more than double the initial hike projected at the beginning of 2024. Additionally, CREA anticipates a total of 492,083 homes to be sold this year, marking a significant 10.5 per cent rise from 2023.

In contrast to its January forecast, which predicted a 10.4 per cent increase in home sales and a 2.3 per cent rise in average home prices for 2024, CREA's updated outlook reflects a more optimistic perspective on the housing market. The association's latest report coincides with a 1.7 per cent increase in home sales in March compared to the previous year, with the average home price reaching $698,530, up two per cent from March 2023.

On a month-over-month basis, CREA observed a 0.5 per cent increase in home sales in March, while the number of newly listed homes decreased by 1.6 per cent during the same period. Despite these fluctuations, the national housing market maintained a relatively stable inventory level, with 3.8 months of inventory available at the end of March, consistent with the previous month but below the long-term average of approximately five months.

CREA's updated forecast reflects a more robust housing market than previously anticipated, with higher-than-expected increases in both home prices and sales activity. These trends suggest continued growth and stability in the Canadian real estate sector for the remainder of 2024.