Following another quiet spring, and increased levels of supply, the Canadian Real Estate Association (CREA) has scaled back its housing market forecast for 2024 and 2025.
Since CREA’s last forecast in April, expectations around interest rate cuts this year have been dialed back. Supply has also built up by more than expected as large numbers of sellers came to the market with properties for sale in the spring; however, buyers remained on the sidelines.
While lower interest rates are still expected to gradually bring buyers back into the market going forward, a slow spring market this year along with growing levels of supply has resulted in a downward revision to the forecast for both sales and average home prices.
Some 472,395 residential properties are forecast to trade hands via Canadian MLS® Systems in 2024, a 6.1% increase from 2023.
The national average home price is forecast to climb 2.5% on an annual basis to $694,393 in 2024.
National home sales are forecast climb a further 6.2% to 501,902 units in 2025 as interest rates continue to decline and demand continues to flow back off the sidelines.
The national average home price is forecast to rise by 5% from 2024 to $729,319 in 2025.
Each quarter, CREA updates its forecast for home sales activity and average home prices via Multiple Listing Service® (MLS®) Systems of Canadian real estate boards and associations. CREA’s next forecast will be published on Tuesday, October 15, 2024. For additional housing market data check out CREA Stats where reports are regularly updated.
