Average home price to end the year lower than 2022: CREA

The Canadian Real Estate Association expects the average price of a home to end the year 4.8 per cent lower than 2022, but says prices will rise by roughly the same amount in 2024.

The Canadian Real Estate Association expects the average price of a home to end the year 4.8 per cent lower than 2022, but says prices will rise by roughly the same amount in 2024.

The association's prediction revealed Friday amounts to an average price of $670,389 this year and $702,214 next year, when prices are expected to increase by 4.7 per cent.

The board also foresees home sales falling 1.1 per cent to 492,674 this year and then rising 13.9 per cent to 561,090 in 2024.

The forecast accounts for little change in month-over-month sales seen since summer 2022 and the modest monthly gains recorded in February and March, as buyers edged closer to make purchases.

"As the spring market heats up and it looks as though some buyers are coming off the sidelines, it's important to remember that the intense market conditions of recent years have not gone anywhere, they've just been on pause," said Jill Oudil, CREA's chair, in a press release.

The market Canadians are re-entering has seen months of falling sales, lower listings and dampened buyer sentiment as eight successive interest rate hikes weighed on the cost of borrowing.

But in recent months, the rate has been held twice in a row, prompting some to eye purchases once more, while prices are still low.