Royal LePage House Price Survey: January 14, 2025

The latest Royal LePage House Price Survey, released today, reveals a promising revival in Canada’s real estate market despite ongoing economic and political uncertainties. The national aggregate home price saw a 3.8% year-over-year increase to $819,600 in the fourth quarter of 2024. On a quarter-over-quarter basis, the national aggregate home price remained relatively flat, rising a modest 0.5%.

Regional Highlights

• Greater Montreal Area: Experienced an impressive 8.2% year-over-year increase in aggregate home prices.
• Greater Toronto and Vancouver: Recorded more modest gains of 2.3% and 0.7%, respectively.
• Quebec City: Continued its strong performance with the highest year-over-year aggregate price increase of 11.3% among major regions.

Ottawa Real Estate Market

The Ottawa real estate market has shown remarkable resilience and growth. In 2024, Ottawa saw 13,526 sales (all housing types), an 11.8% increase from 2023. The average price for homes in Ottawa was $697,067, a 1.3% increase from the previous year, while the median price was $630,000, up 1.6%. The market has been positively impacted by recent interest rate cuts and new mortgage rules, which have increased borrowing power and reduced monthly carrying costs for buyers1.

Factors Driving the Market

Phil Soper, president and CEO of Royal LePage, attributes the market’s revival to several converging factors. Interest rates have fallen sharply in recent months, with further reductions expected in 2025. The Bank of Canada is anticipated to lower rates by another 100 basis points by year-end, steadily improving affordability. Additionally, new mortgage rules are helping younger Canadians by increasing borrowing power and reducing monthly carrying costs2.

Market Outlook

Despite geopolitical uncertainties and concerns over trade policies, Canada’s housing market remains largely insulated from such external pressures in the short term. With strong full-time job growth, improving housing supply in key markets, and more accessible financing, healthy activity levels are expected to persist2.

Housing Type Breakdown

• Single-Family Detached Homes: Median price increased 4.9% year-over-year to $855,900.
• Condominiums: Median price increased 1.5% year-over-year to $592,700.

Conclusion

The Royal LePage National House Price Composite, compiled from proprietary property data in 64 of the nation’s largest real estate markets, indicates a positive trend in the housing market. As we move into 2025, the combination of lower interest rates, new mortgage rules, and renewed buyer demand is expected to drive further growth in the real estate sector2.