>
The Canadian real estate market has been resilient and quite transformative in 2024, with positive outlooks towards 2025. With several factors influencing the fluctuating market including interest rates, limited housing supply, and changing buyer behaviors, the recovery of the Canadian real estate market has been slow.
Throughout 2024, the housing prices have maintained steady numbers, primarily due to the interest rates being high, affordability challenges, and cautious economic environment. The October surge in the Canadian housing market was widespread, supported by strong buyer interest in the major urban areas and beyond. With a high increase of over 7.7% in comparison to September, this was the largest monthly spike recorded in more than the last two years. The national sales-to-new-listings ratio (SNLR) saw an increase due to increased sales and fewer listings, and it settled at around 58%.
Narendra Singh, Managing Director, The Maple Realty, commented on the real estate market stating, “What stood out in 2024 was how Canada’s housing market adapted to high interest rates and supply challenges, showing that innovation and adaptability can turn obstacles into opportunities”.
Canadian real estate market has seen varying (but interesting) trends in 2024 so far. With surprising emerging markets, and growth in major cities, the market has been growing in late 2024. As we approach the closing of the year, let’s see how Canada’s housing market evolved, along with looking at few cities performed in a shining (if perhaps expected) way.
Monthly Trends in Canada’s Real Estate Market
The year 2024 began with subdued activity as high borrowing costs continued to weigh on buyer sentiment. However, signs of recovery emerged mid-year, led by the optimism surrounding potential interest rate cuts. Let’s look at it in a bit more details.
January to April: Buyers and sellers remained cautious, leading to a slow market. High mortgage rates, averaging 7%, significantly dampened demand. Prices showed minimal growth nationally.
May to August: The market regained momentum as the Bank of Canada (BoC) paused interest rate hikes, which reassured buyers, particularly in affordable markets like Calgary and Halifax
September to November: October saw a surge home sales over the month of October with a significant 8% month-over-month variation along with a greater than 20% variation year-over-year. The higher sales numbers indicate renewed buyer interest, fuelled by interest rate cuts. With a balanced market, the SNLR for these months, specially October remained around 58%.
December Outlook: The market is expected to conclude the year on a positive note, with CREA predicting a hopeful market for 2025.
Housing market in top Canadian cities – late 2024
Although there have also been some substantial emerging locations when it comes to housing preferences and competitive rates, our focus here is on the cities that have consistently been leading the Canadian housing trends over the last few years. The year 2024 has seen the front runners of Canadian real estate like Toronto maintain their significance this year also.
Toronto remained one of Canada’s most expensive markets. Affordability challenges persisted, but demand for condos rose as buyers sought alternatives to detached homes. With an increase of around 2.2% on the average home sold price in the Greater Toronto Area (GTA), the City of Toronto specifically saw an increase in the average home sold price by around 2.8%.
Despite being the priciest real estate market in Canada, Vancouver faced reduced activity, particularly for detached homes. Greater Vancouver’s average home price saw a decrease by 4% year over year in October 2024. With this drop and the change in the interest rates, Vancouver remained a balanced market with a sales-to-new-listings ratio of around 48%.
Calgary emerged as a growth leader with an 11.2% annual price increase. The city benefited from a strong labor market and its relative affordability compared to other major cities. In late 2024, Calgary saw a boost of 14% year-over-year increase in the average home price. The energy sector and migration from other provinces contributed to sustained demand
Montreal showed stability in 2024. Family homes and affordable housing saw increased interest, while luxury property sales lagged. The city also benefited from new developments aimed at meeting rising demand. Late 2024 saw Montreal moving into a Seller’s market with average home prices observing an almost 9% increase year-over-year.
Halifax stood out as a star performer in Atlantic Canada, maintaining modest appreciation. As of late 2024, the Halifax housing market favored sellers with SNLR of over 80%.
Factors Influencing 2024 Trends
Interest Rates
Favorable changes in interest rates was a key factor in shaping 2024 trends. The Bank of Canada promoted a steady borrowing environment, though rates remained high enough to deter some buyers from entering the market, the rate cuts in 2024 are showing the most significant changes . Speculation around potential rate cuts in early 2025 has led to a cautious optimism among both buyers and sellers, encouraging some to hold off major transactions until economic conditions improve.
Limited Housing Supply
The housing supply constraints continued to pressure affordability. Urban centers like Toronto and Vancouver experienced a surge in demand, but new construction lagged, leaving inventory scarce. Nationally, new listings increased only marginally, exacerbating supply-side issues. Some mid-sized cities, such as Winnipeg and Hamilton, reported better inventory conditions but still faced challenges meeting demand.
Emerging opportunities in the housing market
As 2024 concludes, the real estate landscape is set for continued evolution. A modest recovery in sales volumes and prices is expected, as highlighted by experts. They project a 6.2% growth in national home sales in 2025. The average national home price is forecasted to rise by over 4% by the end of 2025, reflecting gradual stabilization across markets. The anticipated rate cuts, combined with government initiatives to enhance housing supply, are expected to alleviate some affordability challenges, fostering a balanced market.
This year underscored the need for adaptability in navigating the Canadian real estate market. While traditional powerhouses like Toronto and Vancouver saw continued demand, cities such as Trois-Rivières and Kelowna emerged as surprising hotspots. These smaller markets offered relative affordability and strong local economic growth, attracting a mix of investors and end-users seeking value.
French 
English