The Canadian Real Estate Association (CREA) has scaled back its housing market forecast for 2024 and 2025, as a result of another quiet spring and increased levels of supply.
Expectations around interest rate cuts this year have been dialed back since CREA’s last forecast in April.
CREA noted that 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. Despite this, however, buyers remained on the sidelines, according to CREA.
While lower interest rates are still expected to gradually bring buyers back into the market going forward, CREA noted that 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.
According to CREA, some 472,395 residential properties are forecast to trade hands via Canadian MLS Systems in 2024, a 6.1 per cent increase from 2023.
The national average home price is forecast to climb 2.5 per cent on an annual basis to $694,393 in 2024.
National home sales are forecast climb a further 6.2 per cent 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 per cent from 2024 to $729,319 in 2025, according to CREA.
