Prices increase 1.9 per cent in second quarter even as number of properties bought and sold sag
Author of the article:
Denise Paglinawan
Published Jul 13, 2024 • Last updated 6days ago • 3 minute read
![Home prices to rise 9% this year, despite uncertainty over rate cuts, Royal LePage says (1) Home prices to rise 9% this year, despite uncertainty over rate cuts, Royal LePage says (1)](https://i0.wp.com/smartcdn.gprod.postmedia.digital/financialpost/wp-content/uploads/2024/07/home-sales-gs0712.png?quality=90&strip=all&w=288&h=216&sig=W6LxO1MsJdtWQzHeab7TUg)
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.
We apologize, but this video has failed to load.
Try refreshing your browser, or
tap here to see other videos from our team.
Home prices to rise 9% this year, despite uncertainty over rate cuts, Royal LePage says Back to video
We apologize, but this video has failed to load.
Try refreshing your browser, or
tap here to see other videos from our team.
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.
Advertisem*nt 2
Story continues below
This advertisem*nt has not loaded yet, but your article continues below.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, Victoria Wells and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, Victoria Wells and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
Sign In or Create an Account
or
View more offers
Article content
The increase comes despite a slowdown in activity in the country’s most expensive markets. Toronto and Vancouver reported slower-than-usual market activity in the spring as inventory grew.
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.
“Nationally, home prices rose while the number of properties bought and sold sagged; an unusual dynamic,” said Royal LePage chief executive Phil Soper. “Canada’s housing market is struggling to find a consistent rhythm, as the last three months clearly demonstrated.”
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.
Sales activity in the Greater Toronto Area was unseasonably low this spring, said Royal LePage chief operating officer, Karen Yolevski. Almost all of the price appreciation in the region occurred in the first quarter, followed by a virtual flatline.
Top Stories
Get the latest headlines, breaking news and columns.
By signing up you consent to receive the above newsletter from Postmedia Network Inc.
Article content
Advertisem*nt 3
Story continues below
This advertisem*nt has not loaded yet, but your article continues below.
Article content
New listings are up double digits compared to last year, and active listings are the highest they’ve been in more than a decade, she said.
Yolevski added that activity has slowed across all segments and housing types, not only in the resale market, but in pre-construction as well.
Despite the Bank of Canada’s move to cut the overnight lending rate last month, buyers did not immediately rush back to the market as initially expected, Royal LePage said.
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.
Further interest rate cuts are required to increase purchasing power and improve consumer confidence, the firm said. Lower rates would mean lower monthly payments, opening the door to some families previously shut out of the market.
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.
Advertisem*nt 4
Story continues below
This advertisem*nt has not loaded yet, but your article continues below.
Article content
“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.
Recommended from Editorial
- Mortgage seekers need a good broker. Here's how to find one
- Weaker inflation, even in the U.S., what Bank of Canada hoping for
- Condo listings soar in Toronto, but families struggle to find homes
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.
• Email: dpaglinawan@postmedia.com
Bookmark our website and support our journalism: Don’t miss the business news you need to know — add financialpost.com to your bookmarks and sign up for our newsletters here.
Article content
Comments
You must be logged in to join the discussion or read more comments.
Create an AccountSign in
Join the Conversation
Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.
Trending
- 'It remains tough going:' Bank of Canada will have to keep cutting to perk up weary consumers, economists say
- Taxpayer gets burned after blindly relying on CRA’s website info
- Posthaste: The 'great horizontal wealth transfer' is coming — and it could change a lot
- For young people, the fastest route to home ownership runs through the trades
- FP Answers: Is there any advantage to opening a RRIF account before age 71?
Read Next