
January 20, 2025
Market Trends, Real Estate News
Home sales in Canada rose 10% in the final quarter of 2024 compared to the previous quarter, signaling a potential spring surge in 2025, according to the Canadian Real Estate Association (CREA). This uptick coincides with the Bank of Canada’s ongoing interest rate cuts, which have lowered borrowing costs by 1.75 percentage points since mid-2024.
Despite a 5.8% decline in December sales, activity for the quarter outperformed earlier months, with sales 13% higher than in May 2024. CREA forecasts a 4.7% annual increase in average home values for 2025, predicting a typical sale price of $722,221 by year’s end.
Experts attribute the expected market rebound to improving affordability, a surge in new listings, and increased demand driven by Canada’s record population growth. However, affordability challenges persist, with rates unlikely to return to pre-pandemic lows.
Market activity and price growth are expected to vary. While British Columbia and Ontario may see a recovery in activity due to increased inventory, price gains in these regions could remain modest, particularly in Toronto’s saturated condo market.
Royal LePage forecasts a 6.0% rise in aggregate home prices by the fourth quarter of 2025, with detached homes and condos currently priced at $855,900 and $592,700, respectively.
Source: Global News
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