Phil Soper, President and CEO of Royal LePage, discusses the real estate firm’s latest House Price Survey report.
PRESS RELEASE
TORONTO, Jan. 14, 2025 /CNW/ – 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. 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.
Phil Soper
“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. We believe the Bank of Canada could lower rates by another 100 basis points by year end, steadily improving affordability. At the same time, new mortgage rules are already helping younger Canadians by increasing borrowing power and reducing monthly carrying costs.
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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. |
“While geopolitical uncertainty and concerns over the Trump administration’s proposed trade policies may weigh on consumer confidence, residential real estate remains largely insulated from such external pressures in the short term. Canada’s housing market is fundamentally driven by domestic factors. With strong full-time job growth, improving housing supply in key markets, and more accessible financing, we expect healthy activity levels to persist, even as broader economic challenges unfold,” said Soper.
The Royal LePage National House Price Composite is compiled from proprietary property data nationally and regionally in 64 of the nation’s largest real estate markets. 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. On a quarter-over-quarter basis, home prices remained virtually flat, with the median price of a single-family detached home increasing a modest 0.6 per cent, and the median price of a condominium rising just 0.4 per cent. Price data, which includes both resale and new build, is provided by RPS Real Property Solutions, a leading Canadian real estate valuation company.
“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.
“While unusually severe or mild winter weather conditions can materially impact regional markets in any given week, they won’t disrupt the trajectory of the overall spring market. 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.”
Impact of pending federal election on Canada’s housing market
An early federal election has become all but certain following the resignation of Prime Minister Justin Trudeau and the prorogation of government on January 6th. When the House of Commons resumes in late March, an immediate confidence vote is not expected to pass, triggering an election by mid-spring. The Liberal party is expected to select a new leader by March 9th.
“With a federal election campaign at home and an aggressive stance on trade expected from the new U.S. administration, Canadians will be understandably nervous. That said, the critical need for housing in Canada transcends political cycles. The next government must prioritize addressing the supply crisis, which affects millions of Canadians seeking affordable shelter and stability for their families,” Soper commented.
“For more than three decades, we’ve been underbuilding in Canada, a challenge worsened by the pandemic and our rapidly growing population. As we approach the federal election, housing access and affordability will undoubtedly be among the most pressing issues voters will demand candidates address.”
As Parliament has been prorogued, all pending legislation yet to be passed, outside of Private Members Bills, is nullified. This includes the increase to the capital gains tax inclusion rate introduced in the last spring budget, which impacts anyone who sold a non-primary residence on or after June 25th, 2024.2 Despite this legislation not yet being passed, the Canada Revenue Agency (CRA) will continue to apply the tax changes until the government signals a different intention, as is convention.
Revised mortgage policies and lower lending rates
New lending regulations came into effect at the end of 2024, aimed at improving accessibility for both first-time buyers and existing homeowners. Changes include the expansion of eligibility for 30-year amortizations on insured mortgages to all first-time homebuyers and all buyers of newly constructed homes, an increase from the previous 25-year maximum.3 Additionally, the mortgage insurance cap rose from $1 million to $1.5 million, enabling buyers who put less than 20 per cent down to consider higher-priced properties. This change is particularly significant in Canada’s most expensive real estate markets, where average home prices exceed $1 million. And, for those with mortgages renewing, the removal of the stress test requirement for uninsured borrowers switching lenders will allow Canadians greater choice and likely better rates, as banks will offer more competitive options in order to retain and attract clients.4
“These regulatory changes mark a significant shift in improving access to home ownership for Canadians,” said Soper. “By expanding amortizations and raising the mortgage insurance cap, first-time buyers and those in high-priced markets will find it easier to purchase a home. Additionally, the removal of the stress test requirement for existing homeowners switching lenders will give Canadians greater choice and likely better rates, as financial institutions compete more aggressively to retain and attract clients.
“While extending the life of a mortgage may result in higher overall interest paid, the reduction in monthly carrying costs will help address one of the most immediate barriers to affordability. These new policies will make the dream of home ownership attainable for more Canadians,” he concluded.
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2 What you need to know about capital gains tax in 2024, June 25, 2024 |
3 Federal government announces landmark adjustments to mortgage rules for first-time buyers in Canada, September 17, 2024 |
4 OSFI to drop mortgage stress test for uninsured borrowers who switch lenders at renewal, October 3, 2024 |
Forecast
In December, Royal LePage issued its 2025 Market Survey Forecast,5 projecting 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 in 2024.
Nationally, home prices are forecast to see the strongest quarterly gains in the first half of 2025 driven by a pull-ahead of spring market activity, followed by more moderate increases in the latter half of the year.
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5 Canadian property price appreciation set for a return to long-term norms in 2025, December 5, 2024 |
Royal LePage House Price Survey Chart: rlp.ca/house-prices-Q4-2024
Royal LePage Forecast Chart: rlp.ca/market-forecast-Q4-2024
REGIONAL SUMMARIES
Greater Toronto Area
The aggregate price of a home in the Greater Toronto Area (GTA) increased 2.3 per cent year over year to $1,149,300 in the fourth quarter of 2024. On a quarterly basis, however, the aggregate price of a home in the GTA decreased slightly by 0.6 per cent.
Broken out by housing type, the median price of a single-family detached home increased 3.9 per cent year over year to $1,427,500 in the fourth quarter of 2024, while the median price of a condominium dipped 0.7 per cent to $714,600 during the same period.
“We saw sales activity begin to pick up at the end of 2024, with more showings and more appointments in certain markets. This trend should continue well into 2025. All indicators point to better market conditions for buyers, including first-time homebuyers,” said Shawn Zigelstein, broker and leader of Team Zold, Royal LePage Your Community Realty. “Declining lending rates and changes to mortgage regulations will make it easier for buyers in Toronto and the surrounding regions to take their time and find the right deal for them. There’s enough inventory right now to keep a lid on price gains, and we shouldn’t see the multiple-offer frenzy that characterized peak markets, except on properties that are priced below market value.”
Zigelstein noted that activity in the townhome segment is currently leading the market, due to the property type’s relative affordability. Meanwhile, condominium sales have continued to stagnate.
In the city of Toronto, the aggregate price of a home decreased 1.7 per cent year over year to $1,099,900 in the fourth quarter of 2024. During the same period, the median price of a single-family detached home rose a modest 1.2 per cent year over year to $1,621,900, while the median price of a condominium decreased 2.7 per cent to $681,200.
“Despite improvements in market conditions, there are many factors at play that could impact consumer confidence, and in turn activity, including political instability in Ottawa, friction with the U.S. government, and a weakening Canadian dollar. For this reason, I don’t anticipate a sudden wave of demand or a huge burst of sales. Rather, a gradual increase in market activity should unfold, which will ultimately be beneficial for both buyers and sellers.”
Royal LePage is forecasting that the aggregate price of a home in the Greater Toronto Area will increase 5.0 per cent in the fourth quarter of 2025, compared to the same quarter last year.
Royal LePage House Price Survey Chart: rlp.ca/house-prices-Q4-2024
Royal LePage Forecast Chart: rlp.ca/market-forecast-Q4-2024
Greater Montreal Area
The aggregate price of a home in the Greater Montreal Area increased 8.2 per cent year over year to $613,300 in the fourth quarter of 2024. On a quarterly basis, the aggregate price of a home in the region rose 1.3 per cent.
Broken out by housing type, the median price of a single-family detached home increased 10.6 per cent year over year to $696,300 in the fourth quarter of 2024, while the median price of a condominium posted an increase of 6.1 per cent to $477,500 during the same period. This growth reflects strong activity, particularly in December, when sales surpassed November’s record levels.
“We saw a very dynamic end to the year in the Montreal real estate market. Consumers are feeling more confident about the future, aided by a steady decline in interest rates,” said Marc Lefrançois, chartered real estate broker, Royal LePage Tendance. “With improved purchasing power, first-time buyers have begun to come off the sidelines to enter the real estate market before competition increases and puts upward pressure on prices. We’re also seeing significant demand from empty-nester households in search of a smaller space. As a result, the condominium and entry-level single-family home markets were very busy in the last quarter.”
In Montreal Centre, the aggregate price of a home increased 9.4 per cent year over year to $764,900 in the fourth quarter of 2024. During the same period, the median price of a single-family detached home increased 13.2 per cent to $1,182,900, while the median price of a condominium increased 6.9 per cent to $586,400.
The appeal of move-up properties picked up after months of stagnation. Following initial signs of recovery during the summer months, activity in this segment accelerated towards the end of the year, despite this traditionally quieter period. The luxury market also regained momentum, marked by a notable increase in inventory.
“By analyzing home prices below and above the million-dollar mark and taking into account inflation over the past eight years, we note that the gap has narrowed in several neighbourhoods on the island, creating interesting opportunities for buyers looking to upgrade. This trend was particularly noticeable when comparing the island of Montreal to its suburbs. Montreal is once again becoming the location of choice for families considering upgrading their property type and moving back to the city,” added Lefrançois.
Royal LePage is forecasting that the aggregate price of a home in the Greater Montreal Area will increase 6.5 per cent in the fourth quarter of 2025, compared to the same quarter last year.
Royal LePage House Price Survey Chart: rlp.ca/house-prices-Q4-2024
Royal LePage Forecast Chart: rlp.ca/market-forecast-Q4-2024
Greater Vancouver
The aggregate price of a home in Greater Vancouver increased a modest 0.7 per cent to $1,229,000 year over year in the fourth quarter of 2024. On a quarterly basis, however, the aggregate price of a home in the region dipped 0.4 per cent.
Broken out by housing type, the median price of a single-family detached home increased 1.4 per cent year over year to $1,755,800 in the fourth quarter of 2024, while the median price of a condominium increased 1.0 per cent to $770,100 during the same period.
“The Greater Vancouver real estate market ended the fourth quarter on a high note, with sales activity exceeding last year’s levels, building on the steady upward trend established in October and November.” said Randy Ryalls, general manager of Royal LePage Sterling Realty. “Buyer confidence has notably improved following consecutive interest rate cuts in the second half of 2024, gradually bringing sidelined buyers back into the market.”
Ryalls acknowledged that while inventory remains tight across all housing types, it has increased compared to the same period in previous years.
“We typically see a year-end decline in inventory. However, as activity increases, I anticipate that many properties pulled from the market late last year will be relisted in the coming months, alongside new listings,” added Ryalls. “This boost in inventory should help balance market conditions as we head into what I expect will be a busy first quarter. Many buyers, particularly first-time homebuyers, are eager to transact, recognizing that prices have likely reached their lowest point and that this is the time to enter the market before competition heats up.”
In the city of Vancouver, the aggregate price of a home increased 1.8 per cent year over year to $1,416,900 in the fourth quarter of 2024. During the same period, the median price of a single-family detached home increased 1.1 per cent to $2,269,100, while the median price of a condominium remained virtually flat, decreasing 0.4 per cent to $824,500.
Looking ahead, Ryalls expects a brisk spring market with steady price growth. “Early indicators for 2025 are strong. If inventory levels continue to improve as expected, it could alleviate some of the pressure on buyers while maintaining a competitive advantage for sellers.”
Royal LePage is forecasting that the aggregate price of a home in Greater Vancouver will increase 4.0 per cent in the fourth quarter of 2025, compared to the same quarter last year.
Royal LePage House Price Survey Chart: rlp.ca/house-prices-Q4-2024
Royal LePage Forecast Chart: rlp.ca/market-forecast-Q4-2024
Ottawa
The aggregate price of a home in Ottawa increased 2.1 per cent year over year to $770,400 in the fourth quarter of 2024. On a quarterly basis, the aggregate price of a home in the region remained virtually unchanged, decreasing just 0.6 per cent.
Broken out by housing type, the median price of a single-family detached home increased 2.5 per cent year over year to $888,100 in the fourth quarter of 2024, while the median price of a condominium decreased 2.1 per cent to $392,700 during the same period.
“Thanks to a second 50-basis point cut to the central bank’s key lending rate, Ottawa recorded a stronger-than-usual fourth quarter in 2024. With borrowing costs still on a decline and new mortgage lending rules now in effect, both buyers and sellers are gradually re-entering the market as their confidence grows. Faith in the market needs to go both ways; while rate cuts have been a big plus for buyers and their purchasing power, positive messaging by the Bank of Canada has also reassured sellers that the market and broader economy will maintain some stability,” said Jason Ralph, broker of record and president, Royal LePage Team Realty. “Much of the active inventory we gained during the summer months was snatched up in the fall, and has yet to be replenished. This could create a modest rise in prices come the spring as activity naturally ramps up.”
Ralph noted that Ottawa’s new construction segment has gained some momentum in recent months, but expensive construction financing remains a barrier to creating much-needed housing supply. Uncertain economic conditions and expensive start-up costs have prompted some builders to postpone launches and scale back prices, particularly with larger and higher-end housing projects.
“There is growing optimism that the first quarter of 2025 will bring a robust resale market, with modest price increases in line with historical norms. We have experienced a mild winter in Ottawa so far, which along with favourable borrowing costs, has encouraged more buyers and sellers to the table,” said Ralph. “Turbulence within the federal government is unlikely to drastically disrupt the market in the immediate future.”
Royal LePage is forecasting that the aggregate price of a home in Ottawa will increase 4.0 per cent in the fourth quarter of 2025, compared to the same quarter last year.
Royal LePage House Price Survey Chart: rlp.ca/house-prices-Q4-2024
Royal LePage Forecast Chart: rlp.ca/market-forecast-Q4-2024
Quebec City
The aggregate price of a home in Quebec City increased 11.3 per cent year over year to $400,600 in the fourth quarter of 2024. This represents the highest year-over-year price increase among Canada’s major regions for the third consecutive quarter. On a quarterly basis, the aggregate price of a home in the region increased 3.1 per cent.
Broken out by housing type, the median price of a single-family detached home increased 13.2 per cent year over year to $428,300 in the fourth quarter of 2024, while the median price of a condominium increased 9.7 per cent to $293,400 during the same period.
“Residential real estate activity continued through the end of the year, as many properties that had been languishing finally sold in the fourth quarter. This led to further increases in property prices,” said Michèle Fournier, vice-president and real estate broker, Royal LePage Inter-Québec. “Despite indicators of increased activity compared to the fourth quarter of 2023, a decline in sales was recorded between the third and fourth quarters of 2024, due to a decline in inventory. In other words, the only drag on sales remains the lack of available properties on the Quebec City real estate market.”
The recent decline in interest rates has given buyers greater purchasing power, partly offsetting the effect of rising prices. However, Fournier advises first-time buyers to remain cautious.
“Even if you now qualify for a more expensive property, it’s essential to stick to your initial budget,” she advises. “The ever-increasing cost of living is likely to catch up with you. It’s better to enter the market through a less expensive home that will likely earn you equity over time to help you transfer to a more suitable property in the years to come.”
Royal LePage is forecasting that the aggregate price of a home in Quebec City will increase 11.0 per cent in the fourth quarter of 2025, compared to the same quarter last year.
Royal LePage House Price Survey Chart: rlp.ca/house-prices-Q4-2024
Royal LePage Forecast Chart: rlp.ca/market-forecast-Q4-2024
Calgary
The aggregate price of a home in Calgary increased 3.8 per cent year over year to $688,900 in the fourth quarter of 2024. On a quarterly basis, however, the aggregate price of a home in the region decreased 1.4 per cent.
Broken out by housing type, the median price of a single-family detached home increased 5.1 per cent year over year to $792,800 in the fourth quarter of 2024, while the median price of a condominium increased 3.0 per cent to $268,300 during the same period.
“The Calgary housing market ended 2024 with more balanced conditions than we have seen in previous months. Buyer demand was similar to the same time last year, yet home supply is more robust, with approximately two-and-a-half months worth of inventory. This has helped to keep the rate of price appreciation in check,” said Corinne Lyall, broker and owner, Royal LePage Benchmark. “The second 50-basis point rate cut in the fourth quarter prompted a brief burst of activity in December, as lower rates encouraged some buyers into the market. We sense that there is still plenty of pent-up demand on the sidelines, especially in the highly-desired entry-level segment. Given the current economic and political climate, many buyers prefer to postpone their purchase until they feel the timing is right.”
Lyall noted that home inventory has increased in the upper price points of the market, but supply under the $600,000-mark that is the most accessible to first-time buyers has struggled to be replenished. Meanwhile, the city continues to see robust construction activity of new homes, particularly new rental supply within the downtown core.
“An early spring market is likely on the cards for Calgary in 2025, starting as early as February. Whereas typically, buyers will come out before sellers do, our agents are seeing a number of sellers lining up their properties for listing in the coming weeks, looking to get ahead of the spring rush. This likely means a surge in activity will come sooner than later,” said Lyall. “With inventory levels higher than they have been in recent years and interest rates now on a downward trajectory, we could be looking at a perfect storm that will result in strong sales and modest price growth this spring.”
Royal LePage is forecasting that the aggregate price of a home in Calgary will increase 4.0 per cent in the fourth quarter of 2025, compared to the same quarter last year.
Royal LePage House Price Survey Chart: rlp.ca/house-prices-Q4-2024
Royal LePage Forecast Chart: rlp.ca/market-forecast-Q4-2024
Edmonton
The aggregate price of a home in Edmonton increased 7.2 per cent year over year to $461,300 in the fourth quarter of 2024. On a quarterly basis, the aggregate price of a home in the region increased 1.1 per cent.
Broken out by housing type, the median price of a single-family detached home increased 7.5 per cent year over year to $505,900 in the fourth quarter of 2024, while the median price of a condominium increased 5.1 per cent to $202,600 during the same period.
“Unlike some other regions that saw a slowdown in the final weeks of 2024, activity in the Edmonton housing market was unseasonably high, recording a year-over-year increase of approximately 16% in December sales alone. Inventory continues to be extremely limited in this market, which is driving price gains in all segments. Two years ago, we had 1,000 more active listings than we do today, which underscores just how tight conditions have become,” said Tom Shearer, broker and owner, Royal LePage Noralta Real Estate. “Inventory is being gobbled up by residents migrating to the region to take advantage of current property values, often from outside of the province. First-time buyers and junior move-up purchasers continue to relocate to the city for its relatively more affordable home prices, as well as Edmonton’s thriving job market.”
Shearer noted that while homeowners are confident they can sell their homes quickly and at a fair price, many are hesitant to list their properties due to fierce market competition, which makes finding their next home more challenging. As a result, sellers have shifted their focus from maximizing sale price to prioritizing the purchase of their next home.
“Edmonton will no doubt see a busy spring market, with price appreciation potentially reaching the high single-digit or low double-digit range. Until February and March, when we are expecting more sellers to enter the ring, buyers are going to start feeling desperate for new inventory,” said Shearer. “As a result, we may see buyers start to seek properties in smaller and more rural Alberta communities that offer less competitive conditions and more affordable price points within commuting distance of the city.”
Royal LePage is forecasting that the aggregate price of a home in Edmonton will increase 9.0 per cent in the fourth quarter of 2025, compared to the same quarter last year.
Royal LePage House Price Survey Chart: rlp.ca/house-prices-Q4-2024
Royal LePage Forecast Chart: rlp.ca/market-forecast-Q4-2024
Halifax
The aggregate price of a home in Halifax increased 2.5 per cent year over year to $503,000 in the fourth quarter of 2024. On a quarterly basis, however, the aggregate price of a home in the region decreased 1.4 per cent.
Broken out by housing type, the median price of a single-family detached home increased 2.8 per cent year over year to $567,700 in the fourth quarter of 2024, while the median price of a condominium remained flat, dipping just 0.1 per cent to $413,200 during the same period.
“Activity in the Halifax housing market remained strong right through the middle of December, with transactions higher than they were a year prior, kicking off the first quarter of the new year with robust buyer demand. Although January is typically one of the slower months on the calendar, we are on track to see a stronger-than-normal performance given that interest rates are on the decline,” said Matt Honsberger, broker and owner, Royal LePage Atlantic. “The return of sidelined buyers to the market has unfolded at a moderate and steady pace, which has helped to keep a lid on price appreciation. We know that some buyer hopefuls continue to hold out for fixed mortgage rates to come down further.”
Honsberger noted that consumer confidence has yet to be fully restored, and first-time buyers in particular continue to face affordability challenges across the region.
“With would-be move-up buyers hesitant to take the leap – given the likelihood of increased carrying costs due to higher rates – there is not enough available inventory in the entry-level segment of the market for first-time buyers to get in. This has resulted in continued tight competition and multiple-offer scenarios in many cases,” added Honsberger. “While a slew of new residential projects are set to be completed in 2025, most of the units will be purpose-built rentals. The supply of semi-detached and row homes in the city remains well below what is needed to accommodate our young buyers. This will put further upward pressure on home prices as we move through 2025.”
Royal LePage is forecasting that the aggregate price of a home in Halifax will increase 4.0 per cent in the fourth quarter of 2025, compared to the same quarter last year.
Royal LePage House Price Survey Chart: rlp.ca/house-prices-Q4-2024
Royal LePage Forecast Chart: rlp.ca/market-forecast-Q4-2024
Winnipeg
The aggregate price of a home in Winnipeg increased 6.1 per cent year over year to $401,100 in the fourth quarter of 2024. On a quarterly basis, however, the aggregate price of a home in the region decreased 0.4 per cent.
Broken out by housing type, the median price of a single-family detached home increased 6.2 per cent year over year to $440,700 in the fourth quarter of 2024, while the median price of a condominium increased a modest 0.9 per cent to $260,400 during the same period.
“Winnipeg’s real estate market remained strong throughout the fourth quarter of 2024, with sales increasing in comparison to last year,” said Michael Froese, broker and manager, Royal LePage Prime Real Estate. “While we usually see a sharper seasonal slowdown in December, it was much more gradual this year, driven by steady buyer demand despite limited inventory. As a result, prices have been rising and are likely to keep climbing into the new year.”
Froese noted that buyer confidence remained high throughout 2024, however activity has surged in recent months following consecutive interest rate reductions and new mortgage legislation aimed at supporting buyers.
“While demand remains strong across all segments of the market, limited inventory will continue to put upward pressure on prices as we move into the spring. As buyers begin to re-enter the market and competition ramps up, multiple-offer scenarios will become more prevalent,” Froese added.
Froese anticipates the spring market will bring a steady increase in activity, following typical seasonal patterns. “While we’re hopeful that inventory will rise to meet the growing demand, all indicators suggest that strong buyer interest will continue to outpace supply, leading to heightened demand in the months ahead,” Froese added. “Although the overall market will remain highly competitive, certain neighbourhoods and price points offer excellent opportunities for buyers with the right guidance and strategic approach.”
Royal LePage is forecasting that the aggregate price of a home in Winnipeg will increase 4.0 per cent in the fourth quarter of 2025, compared to the same quarter last year.
Royal LePage House Price Survey Chart: rlp.ca/house-prices-Q4-2024
Royal LePage Forecast Chart: rlp.ca/market-forecast-Q4-2024
Regina
The aggregate price of a home in Regina increased 3.4 per cent year over year to $380,100 in the fourth quarter of 2024. On a quarterly basis, however, the aggregate price of a home in the region decreased 1.8 per cent.
Broken out by housing type, the median price of a single-family detached home increased 4.9 per cent year over year to $415,300 in the fourth quarter of 2024, while the median price of a condominium increased 1.2 per cent to $225,800 during the same period.
“High demand and low inventory continue to define the housing market in Saskatchewan’s major regions. Though the arrival of winter weather and the holiday season sparked a bit of a slowdown at the end of 2024, two 50-basis point rate cuts by the Bank of Canada kept much of the momentum going throughout most of the fourth quarter, which ended with unit sales 15 per cent higher than the same period in 2023,” said Mike Duggleby, associate broker and manager, Royal LePage Next Level. “We continue to see most of the market pressure in the entry-level segment, where multiple-offer scenarios are still common. Demand for rental accommodations is also high, driven by inter-provincial migration and newcomers to Canada. With interest rates continuing to drop, these segments will continue to feel pressure as new buyers feel encouraged to enter the market.”
Duggleby added that inventory in the region is extremely tight. Between Regina and Saskatoon, less than 1,000 listings are currently available for sale, a fraction of which are in the entry-level segment. With limited inventory available for move-up buyers, the churnover of supply is temporarily frozen as homeowners hold off on selling their properties, afraid they may not find their next home. Meanwhile, many developers have geared up to build new purpose-built rentals at a rate that has not been seen in quite some time.
“I expect a very busy first quarter. However, this will be heavily dependent on the weather. We’ve had heavy snowfall already, and should Regina receive more, it could push back the beginning of the spring market,” said Duggleby. “Newcomer buyers have been a market driver throughout the past few years and this is likely to be the case for the near future. With a federal election potentially slated for the second quarter, new policies may have an effect on immigration levels, which could impact the market later this year and into 2026.”
Royal LePage is forecasting that the aggregate price of a home in Regina will increase 9.0 per cent in the fourth quarter of 2025, compared to the same quarter last year.
Royal LePage House Price Survey Chart: rlp.ca/house-prices-Q4-2024
Royal LePage Forecast Chart: rlp.ca/market-forecast-Q4-2024
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About the Royal LePage House Price Survey
The Royal LePage House Price Survey provides information on the most common types of housing, nationally and in 64 of the nation’s largest real estate markets. Housing values in the Royal LePage House Price Survey are based on the Royal LePage Canadian Real Estate Market Composite, produced quarterly through the use of company data in addition to data and analytics from partner company, RPS Real Property Solutions, the trusted source for residential real estate intelligence and analytics in Canada. Additionally, commentary on housing market trends and data on price and forecast values are provided by Royal LePage residential real estate experts, based on their opinions and market knowledge.
About Royal LePage
Serving Canadians since 1913, Royal LePage is the country’s leading provider of services to real estate brokerages, with a network of approximately 20,000 real estate professionals in over 670 locations nationwide. Royal LePage is the only Canadian real estate company to have its own charitable foundation, the Royal LePage® Shelter Foundation™, which has been dedicated to supporting women’s shelters and domestic violence prevention programs for 25 years. Royal LePage is a Bridgemarq Real Estate Services® company, a TSX-listed corporation trading under the symbolTSX:BRE. For more information, please visit www.royallepage.ca.
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