Specifically, Alberta’s prices may rise by 7 percent, while Saskatchewan and Manitoba could see increases of 6.2 percent and 6 percent, respectively. In Ontario, home prices are expected to recover with a 4.6 percent increase after a projected decline of 0.4 percent in 2024.
Sondhi remarked, “In the spring of 2023, home prices jumped after the Bank of Canada paused on raising interest rates. This year, we’ve had three rate cuts announced by the Bank of Canada, yet we’re not seeing that same enthusiasm by home purchasers.”
He forecasted a pickup in home sales by Q4 2024, driven by lower rates. However, he cautioned that sales levels might not return to pre-pandemic figures until 2025.
The Prairie provinces, particularly Calgary, are expected to outperform in home price growth due to strong affordability and economic performance.
Sondhi noted that Alberta benefits from solid population growth and economic activity. He explained, “Affordability is still not that bad by historical standards.”