Revealed: New Forecast by Re/Max on Canada Home Prices in 2024

According to a new forecast released by Re/Max, home price growth across Canada is expected to remain sluggish in 2024, with the country’s largest housing market—Toronto—expected to see prices fall. The company’s 2024 housing market outlook predicts that average prices will grow only 0.5% next year. However, there are expected to be pockets of strength, as 61% of the regions surveyed by Re/Max should see price growth of between 2% and 7.5%. Despite house prices in Canada being roughly 38% higher than they were pre-pandemic, a slowdown throughout the fall of 2023 is expected to dampen sellers’ expectations heading into the New Year.

In terms of regional breakdown, price growth in Metro Vancouver, the most expensive real estate market in the country, is expected to rise 2% to an average of $1.52 million. Halifax, which saw inflated real estate prices due to inter-provincial migration during the pandemic, is expected to see no growth at all in 2024. Mississauga and Brampton, with average prices sitting just over $1 million, are also expected to see flat price growth next year, despite declines in 2022. Overall, 61% of all markets included in the reports will continue to see prices rise. However, some noticeable price declines are expected across the country, with the Greater Toronto Area expected to see prices drop 3% in 2024 to $1.09 million, and average prices in Victoria, B.C., likely to slip 2% to $942,000. Kitchener-Waterloo, a region that saw an 8.4% price drop between 2022 and 2023, may see another 8% drop next year. North Bay, ON, a market that saw a 25% jump in prices last year, is expected to see no growth at all in 2024, according to Re/Max’s estimation.

Affordability challenges are expected to continue in the new year, with homebuyers struggling with high housing costs worsened throughout the pandemic and interest rate hikes. However, some would-be homeowners are turning to becoming landlords in order to overcome affordability hurdles, with the majority of regions surveyed noting that many homebuyers are looking for primary residential properties with rental potential to offset the rising cost of living and reduce mortgage payments. Re/Max expects this trend to continue into 2024. Despite weak price growth, 73% of Canadians still consider real estate to be the best investment they could make, according to a Leger survey commissioned by Re/Max. This sentiment was reinforced by a recent consumer survey by Mortgage Professionals Canada, which found nearly 80% of respondents continue to see real estate as a good long-term investment, despite the current market conditions.

While the market is anticipated to cool in the first half of 2024, Canadians’ perceptions of real estate as a good investment haven’t shifted since 2022, according to the Re/Max report.