Rate cut hopes could have psychological impact on homebuyers in 2025 – National [Video]

Canadian real estate watchers are expecting home prices and housing activity to rise in 2025 after a “recovery year,” but the Bank of Canada’s policy rate will still have sway over how quickly buyers come back.

Royal LePage released its 2025 housing outlook on Thursday, forecasting the aggregate price of a home in Canada will hit $856,692 in the fourth quarter of next year, a 6.0-per cent year-over-year hike.

For the single-family detached market, prices are expected to rise 7.0 per cent annually to just over $900,000. Condos meanwhile are forecast to increase 3.5 per cent year-over-year to $605,993.

More affordable housing markets are expected to see the most sizeable gains next year, led by Quebec City (up 11 per cent), Edmonton and Regina (both up nine per cent). Montreal is forecast for 6.5-per cent growth, outpacing the metropolises of the greater Toronto (up 5.0 per cent) and Vancouver (up 4.0 per cent) areas.

Royal LePage CEO Phil …