Breaking: Real Estate in Canada is about to increase in price again

Canada’s housing market is finally showing the signs of recovery that many have been predicting for some time now.

Canada’s housing market is finally showing the signs of recovery that many have been predicting for some time now. March saw an increase in demand for new homes, coupled with a rise in property prices, highlighting that things are looking up for the sector.

The decision by the Bank of Canada to hold the basic interest rate at 4.5% after almost a year of decline could well be one of the reasons the housing market is heating up again. The Real Estate Association of Canada (REA) recently reported that nationwide home sales in March increased by 1.4% over the previous month, resulting in similar figures for February too.

The REA also highlighted that the number of people looking to buy a home was outstripping those hoping to sell. An analysis of the data showed that this was caused by many real estate owners being able to withstand the current interest rate, so there was no urgent need for them to sell property quickly.

Breaking News: Real Estate in Canada is about to increase in price again

House prices also enjoyed a slight increase, with the national house price index for Canada receiving a boost of 0.2% in March. Average house prices now exceed CAD 686,000, which represents an increase of CAD 75,000 since January, but is still 13.7% down on the same period last year.

Looking ahead, the REA predicts that house prices will continue to rise and return to old levels by next year. The average house price is anticipated to be 4.8% lower than last year, with the forecast being CAD 670,000 this year, rising to over CAD 700,000 in 2024.

According to the REA, real estate hotspots such as Toronto, London, Kitchener-Waterloo, and Kawartha Lakes in Ontario province, plus Chilliwack in British Columbia province, are expected to drive the prices up. The association also forecasts that home sales may increase sharply in the near future when borrowing costs become more stable.

All-in-all, these signals are positive news for the Canadian housing market as it looks to bounce back and regain its previous momentum.