Categories: World News

Forecast predicts Toronto house prices will surpass Vancouver’s

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Toronto is set to overtake Vancouver as Canada’s most expensive housing market by the end of the year, according to a forecast by Royal LePage. The real estate company predicts that Toronto and Montreal will see the biggest gains, outpacing Vancouver and Calgary.

After a strong first quarter with higher-than-expected sales and price gains, Royal LePage has revised its forecast for home prices across the country. The aggregate price of a home in Canada rose 4.3% year over year in the first quarter of 2024 to $812,100.

The forecast indicates that Toronto house prices are expected to rise by 10% in the fourth quarter, the highest appreciation among major markets in the country. Montreal is also expected to see significant gains, with prices forecasted to rise by 8.5% in the fourth quarter.

On the other hand, Vancouver’s housing market has experienced more moderate growth, with prices rising by 3.4% in the first quarter. However, the market is expected to gain momentum in the coming months, with prices forecasted to increase by 5.5% in the fourth quarter.

Calgary, which saw the biggest appreciation in the first quarter, is expected to see an 8% increase in home prices in the fourth quarter. Overall, almost 90% of regions tracked by Royal LePage posted higher prices at the beginning of the year, but the housing market has not fully recovered from the post-pandemic correction.

Despite the gains, the aggregate price of a home in Canada is still 5.2% below the peak reached in the first quarter of 2022. However, prices remain significantly higher than pre-pandemic levels. In the first quarter of 2024, home prices were almost 30% above what they were in 2019.

Overall, the forecast suggests that Toronto and Montreal will see the highest home price appreciation this year, surpassing Calgary, which was previously expected to record the biggest gains. The report highlights the strong buyer demand in Toronto and Montreal, driven by the need to get ahead of rising home prices.

Team@GQN.