Where Are Property Values Heading?
Good afternoon everyone!
Welcome to another episode of The Canadian Real Estate Investor, where your hosts Daniel Foch and Nick Hill discuss the market and provide the tools and insights to build your real estate portfolio.
We’ve got some exciting topics for today’s episode.
🧹Housekeeping
Unpacking Multiplex: Unpacking Multiplex Event
Our unpacking multiplex event is happening in 2 days (August 22nd) in Toronto. There are virtual tickets available so you can attend from wherever you are across Canada, or globally (Hello Ireland, Netherlands, and India!).
Join our Meetup Group: Meetup.com
We have a monthly meet up organized in various cities across the country. Check out our link to see what city is the closest to you so you can attend one of the meet ups whether you are in Windsor, Calgary, or even Ottawa (our newly launched meet up!) we’d love to have you join!
🎙️Podcast
Let’s dive in- in today’s episode we cover the most recent CREA report and look at markets across the country.
Key takeaways:
The Canadian real estate market experienced a slight dip in home sales in July 2024, down 0.7% month-over-month. However, sales were still 4.8% higher than the previous year. Despite this small decline, new property listings and the Home Price Index (HPI) showed mixed signals, with a marginal increase in the HPI and a slight decrease in national average sale prices.
There is significant anticipation of further rate cuts by the Bank of Canada, which is expected to stimulate the housing market. Analysts are predicting that lower interest rates could boost housing activity and market momentum moving into 2025, although there are concerns about potential increases in mortgage delinquencies.
The real estate market is balanced, with no strong buyer's or seller's market prevailing. The market is expected to remain relatively stable with more listings, potentially leading to an oversupplied market in the fall.
Edmonton and Hamilton-Burlington are experiencing significant monthly price increases. Conversely, Toronto has seen the biggest price decrease.
Regional Variation across Canada
Source: The Canadian Real Estate Association
Ontario: Average house price is $845,000, down about 1% from the start of the year.
Quebec: Average price is $491,000, up 7.7%.
New Brunswick: Average price is $290,000, up nearly 10%.
Nova Scotia: Average price is $391,000, up 7.9%.
PEI: Average price is $334,000, up 3.2%.
Newfoundland and Labrador: Average price is $298,000, up 6%.
Northwest Territories: Relatively unchanged at $470,000.
Yukon: Average price is $533,000, up 4.5%.
National Average: $665,132, up 0.3% from last year.
Host Updates from Across the Country
We also interviewed several of our meet up hosts from across the country and asked for their opinion on the current housing market. We got pretty mixed response which is pretty interesting as we are currently balanced out despite the rate cut.
This is clear that despite the national average, the provinces balances each other out as some provinces are struggling in terms of housing while some are thriving.
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Thank you for reading, and see you again for our next episode!
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