Home prices will return to pandemic peak by end of 2024: report

Home prices across Canada are expected to climb next year with expected Bank of Canada rate cuts poised to reinvigorate the housing market, according to a new report.

Royal LePage’s 2024 market survey 2024, released Thursday, predicts that home prices will make incremental gains in the first half of the year. Those gains will be followed by larger price increases in the second half of the year, spurred by expected interest rate cuts from the Bank of Canada after a historic rate-hiking cycle.

“We see 2024 as an important tipping point for the national economy as the majority of Canadians acknowledge that the ultra-low interest rate era is dead and gone,” Royal LePage CEO Phil Soper said in a press release on the research.

“We believe that the ‘great adjustment’ to tolerable, mid-single-digit borrowing costs will have a firm grip on our collective consciousness after only modest rate cuts by the Bank of Canada.”