Prices increase 1.9 per cent in second quarter even as number of properties bought and sold sag
The national aggregate home price rose again in the second quarter and is expected to increase further by the end of the year, real estate firm Royal LePage said.
The aggregate price of a home in Canada rose 1.9 per cent year over year to $824,300 in the second quarter of 2024, up 1.5 per cent over the first quarter, according to the house price survey Royal LePage released on Thursday.
The national aggregate home price remains well above pre-pandemic levels, with the second quarter showing an increase of 30.8 per cent over the same period in 2019, said Royal LePage.
Among major regions, Quebec City recorded the highest year-over-year aggregate price increase, up 10.4 per cent.
Soper noted that inventory levels in many regions have climbed materially, which he described as the closest it’s been to a balanced market in several years.
Yolevski added that activity has slowed across all segments and housing types, not only in the resale market, but in pre-construction as well.
Soper said that when the first rate cut finally occurred in early June, “market response was tepid.” The quarter-point cut, he said, unsurprisingly didn’t substantially improve the affordability picture.
Earlier this year, a survey conducted by Leger on behalf of Royal LePage found that 51 per cent of sidelined homebuyers said they would resume their search if interest rates reversed.
“Once consumers regain the confidence to re-enter the market – likely following several more interest rate cuts – this boost in supply will be a welcome improvement to market conditions,” said Yolevski.
Royal LePage maintained its national year-end forecast, with prices expected to increase nine per cent in the fourth quarter of 2024 compared to the same quarter last year.
Nationally, home prices will see continued moderate price appreciation throughout the second half of the year, the company forecasted.