Canada’s housing market is feeling the pressure as high interest rates continue. Home prices across the country remain stagnant, despite high demand in major cities. Many buyers are struggling to afford homes, and sellers are holding off on listing.
The Bank of Canada has kept interest rates high to control inflation. This has led to higher mortgage rates, making it more expensive for people to buy homes. With mortgages costing more, many potential buyers are holding back.
Home Prices Remain Stagnant Across Canada
In November 2024, the average home price in Canada was $694,411, up 7.4% from November 2023.
However, prices have not changed much recently. High borrowing costs have slowed down price growth.
Home prices remain stagnant across Canada, with little movement in most regions. Despite strong demand in major cities, affordability issues continue to challenge potential buyers across the country.
Real estate agencies in Canada are reporting fewer sales, as buyers hesitate. The market is quieter, with fewer people able to afford new homes.
People still want to live in these areas for work, education, and lifestyle. However, the high cost of borrowing makes it harder for many to make the jump into homeownership.
Cities like Toronto and Vancouver still see strong demand. In Toronto, home sales increased for the fourth straight month in November, rising 1.9% from October and 40% from November 2023.
Despite this demand, high interest rates keep prices from rising quickly.
What’s Next for Canada’s Housing Market?
Experts believe the market will stay under pressure as long as interest rates remain high. If the Bank of Canada keeps rates up, home prices could stay flat or even decline.
But if rates are lowered in the future, home prices could rise again as more buyers enter the market. Despite continued demand in major cities, home prices remain high, making it challenging for many buyers.
For now, Canadians are watching closely. Home prices across Canada may remain stagnant for the rest of the year.
With so many factors in play, the future of the housing market is uncertain. Real estate agency in Canada is advising buyers and sellers to be cautious and plan carefully.
- Average Home Price (Canada): $694,411 in November 2024, a 7.4% increase from November 2023.
- Home Sales: 44,590 in November 2024, a 3.0% increase from October and a 27% increase from November 2023.
- New Listings: Down 0.5% month-over-month in November 2024.
- Months of Inventory: 3.7 months in November 2024, down from 3.8 months in October.
These figures show a market with steady prices but ongoing challenges due to high interest rates. Both buyers and sellers should stay informed and consider professional advice when making decisions.