Royal LePage has reported that home prices in Canada are still climbing, even though fewer houses are being sold. This surprising trend is causing a lot of discussion among real estate experts. They had hoped that with fewer sales, prices might drop and make homes more affordable. Instead, prices are going up.
In its latest survey, Royal LePage found that the national average home price went up by 2.8% in the second quarter compared to last year. This increase is happening even though the number of homes sold has dropped. The rising prices are mainly because there are fewer homes available for sale, creating a situation where buyers are competing for the limited supply.
Royal LePage’s CEO, Phil Soper, explained that the strong demand for homes, combined with a lack of available properties, is driving prices higher. Even with interest rates rising, many people still want to buy homes. This demand is keeping prices high, despite the overall drop in sales.
Experts believe that unless more homes are built to meet the demand, prices will likely keep going up. For now, the market remains tough for buyers, especially first-time homebuyers who are finding it harder to afford a home. As long as demand continues to outpace supply, the trend of rising home prices in Canada is expected to persist.
Comments