Canadian home prices expected to rise until 2025

Experts anticipate a rise in Canada's home prices this year, with expectations of further increases in 2025, according to Reuters. This prediction comes amid continuous strong demand for housing and a notable lack of new supply, coupled with the likelihood of interest rate cuts later in 2024.The surge in Canadian home prices by over 50% during the pandemic was fuelled by exceptionally low interest rates and a scramble for more spacious living by homeowners. However, a subsequent 14% drop from the peak in early 2022 highlighted a cooling period. This cooling, in the face of an ongoing housing shortage, was attributed to the dampening effect of higher mortgage rates and steep prices, which sidelined many potential buyers.Lately, a slight dip in mortgage rates—spurred by expectations of the Bank of Canada trimming rates after its aggressive hikes—has nudged some buyers back into the market. A Reuters poll involving 17 analysts predicts a modest 1.2% increase in average home prices this ye...