Home Prices Climb in Major Canadian Metros

In August 2024, home prices in Canada continued to remain stable on a national level, with the MLS® Home Price Index (HPI) remaining relatively unchanged month-over-month. The national average sale price in August 2024 was $649,100, nearly unchanged from the previous year, registering just a 0.1% increase. However, underlying trends suggest a more optimistic outlook than this month-over-month trend might indicate.

Although the MLS® Home Price Index (HPI) showed a 3.9% decline compared to August 2023, a year-over-year drop, this was largely driven by price gains that occurred last spring and summer, followed by declines in the latter half of 2023. The CREA suggests that this downward trend in the second half of last year suggests that future year-over-year comparisons may begin to show improvement. 

Furthermore, while the national trend points to stagnation, recent performance over the past six months in key metropolitan areas contrasts with this broader picture.

In the majority of Canada’s major metro markets, home prices have risen over the past six months, signalling more dynamic growth. This rise offers a more optimistic outlook compared to the broader national trend, signalling the potential for continued growth in these urban areas.

London leads the way in seasonally-adjusted increases from February to August 2024, with Quebec City and Halifax following. Out of 15 of Canada’s major cities, only Regina showed a decrease, with a slight drop.

Listings and Sales

Nationally, new listings rose 1.1% month-over-month in August 2024, accompanied by a 1.3% increase in sales. The overall number of properties listed for sale grew by 18.8% year-over-year to 177,450, although this remains more than 10% below historical norms.