Projected Home Price Trends In Canada for 2025
As the real estate market in parts of Ontario experiences a slowdown, experts are forecasting a rebound that could lead to higher home prices for buyers in the coming year.
Market Forecasts
Recent forecasts from Royal LePage and the Canadian Real Estate Association (CREA) suggest a significant increase in average home prices across Canada by 2025. Royal LePage anticipates a 10% rise in average home prices in the Toronto area by the end of this year, setting the stage for further growth. According to CREA's latest projections, every province is expected to see an increase in home prices next year, ranging from 2% in P.E.I. to 7.9% in Alberta. Ontario and B.C., known for their high housing costs, are poised for substantial increases as well.
Ontario Trends
In Ontario, the average price of a house or condo is forecasted to rise by 0.7% by the end of 2024, reaching $876,965. By 2025, prices are expected to climb further by 3.9%, reaching $911,150. Home sales are also projected to rebound significantly, with an expected increase of 7.3% in 2025, totalling 178,461 transactions.
The Market
Despite initial expectations of interest rate cuts and increased buyer activity, the spring saw an unexpected surge in property listings with buyers remaining cautious. CREA notes that while lower interest rates are expected to attract more buyers, the impact may be less pronounced than initially anticipated.
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