Rates, regulations and renewed demand driving housing market activity

According to the Royal LePage® House Price Survey released today, the aggregate1 price of a home in Canada increased 3.8 per cent year over year to $819,600 in the fourth quarter of 2024. On a quarter-over-quarter basis, the national aggregate home price remained essentially flat, rising a modest 0.5 per cent. When broken out by housing type, the national median price of a single-family detached home increased 4.9 per cent year over year to $855,900, while the median price of a condominium increased 1.5 per cent year over year to $592,700. While activity began to flourish again in the final months of 2024, following sluggish demand in most major markets over the summer, home price appreciation remained in check last quarter. 

“There are several converging factors revitalizing Canada’s real estate market and making home ownership more attainable,” said Phil Soper, president and CEO, Royal LePage. “Interest rates have fallen sharply in recent months, with further reductions expected in 2025. At the same time, new mortgage rules are already helping younger Canadians by increasing borrowing power and reducing monthly carrying costs.

“Year over year activity levels were up sharply in Canada’s largest cities during the fourth quarter, with national home sales volumes exceeding the ten-year moving average for the first time since the post-pandemic market slowdown began three years ago,” said Soper. “As sidelined buyers regained confidence and took advantage of improved affordability, momentum built steadily through the final months of 2024.

“We expect stronger demand to persist through the winter, setting the stage for an early and active spring season,” continued Soper. “Home prices are likely to trend only modestly upward over the coming year as inventory is absorbed. This is welcome news for buyers, who can look forward to a more balanced market compared to the frenzied conditions of 2021 and 2022.”

Royal LePage is forecasting that the aggregate price of a home in Canada will increase 6.0 per cent in the fourth quarter of 2025, compared to the same quarter last year. 

1 Aggregate prices are calculated using a weighted average of the median values of all housing types collected. Data is provided by RPS Real Property Solutions and includes both resale and new build.

Learn more:

• National release: rlp.ca/Q4-2024-hps-release   

• Regional analyses: rlp.ca/regional-releases 

• Quebec Markets release: rlp.ca/Q4-2024-hps-release-QC   

• House Price Survey Chart: rlp.ca/house-prices-Q4-2024  

• Market Survey Forecast Chart: rlp.ca/market-forecast-Q4-2024