The Canadian housing market has seen some significant changes in July 2024, with the average selling price of homes decreasing across various property types. The national market report summary reveals that the average selling price of a home in Canada dropped by 3.9% year-over-year to $724,800. Similarly, the average selling price of single-family homes, townhouses/multiplexes, and condos also experienced decreases in July 2024 compared to the previous year.
Despite the decline in home prices, the rental market in Canada saw an increase in average rent by 7.0% year-over-year to $2,156 in July 2024. The rental market is beginning to show signs of slowing down, with the annual rent increase being the slowest in over two years. Different housing types, such as purpose-built rentals and condominiums, experienced varying growth rates in rental prices.
The Canadian Real Estate Association (CREA) reported a sales-to-new-listings ratio (SNLR) of 55% in July 2024, indicating a balanced market nationally. While some markets, like Calgary and the Greater Toronto Area (GTA), saw declines in sales activity, others, such as Edmonton and Hamilton-Burlington, experienced gains. The Prairies market, in particular, showed strength due to affordability and robust economic conditions.
Experts remain cautiously optimistic about the future of the Canadian housing market, predicting a rebound in the second half of the year driven by lower interest rates and pent-up demand. The market’s performance varies significantly across the country, with some regions showing strength while others face challenges.
In terms of the rental market, there is a clear divide between cities with high rental costs and those experiencing rapid growth in rental prices. Major cities like Toronto and Vancouver are seeing a drop in rental prices, while other areas are experiencing increases. The affordability issue remains a concern, particularly in large urban centers.
Overall, the Canadian housing market is in a transitional phase, with various factors influencing its performance. It is essential for buyers, sellers, and renters to stay informed about market trends and seek advice from local real estate professionals to make informed decisions. With the right knowledge and guidance, individuals can navigate the housing market effectively and make the best choices for their financial future.