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oyal LePage, a leading Canadian real estate brokerage firm, forecasts house prices to rise six per cent annually by 2025. According to its annual market survey forecast, this growth will be seen across all major markets as more buyers enter the market due to lower interest rates.

    The aggregate home price is expected to reach $856,692 in the fourth quarter of 2025, up from $808,200 this year. Detached homes are projected to increase by seven per cent annually over the same period, rising from $841,900 to $900,833. Condominium prices will see a more moderate growth of three and a half per cent, increasing from $585,500 to $605,993.

    The Canadian real estate market has been experiencing a slump since 2022 due to high interest rates. However, with the Bank of Canada cutting its benchmark rate in recent decisions, activity is picking up. Royal LePage notes that this change started in October following a significant rate cut and will be further enhanced by upcoming mortgage lending rule changes.

    President Phil Soper stated that key indicators point to market stability returning in 2025, driven by growing buyer demand and increased borrowing power due to the Bank of Canada's rate cuts and federal government policy changes. The latter includes increasing the insured mortgage cap to $1.5 million, reducing minimum down payments for homes priced between $1 million and $1.5 million. This measure is expected to benefit homebuyers in Toronto and Vancouver, where average prices exceed $1 million.