The average price of a home nationally has gone up significantly just this year, according to the Canadian Real Estate Association's (CREA) latest monthly report.

The housing market report, published Friday morning, states that the actual (not seasonally adjusted) national average home price in March 2024 was $698,530, up 2 per cent from March 2023.

In January, CREA said this national average was $659,395 in January 2024, up 7.6 per cent from January 2023.

This means from January to March this year, buying a home became $39,135 pricier.

The Bank of Canada announced a sixth consecutive interest rate hold on Wednesday, and experts don’t anticipate a rate cut any time soon, making the market a bit more hostile for people hoping to buy a residential home.

In its commentary, the Bank said a rate dip could be likely in 2025, as inflation rates are projected to reach central bank targets.

Will sky-high interest rates coupled with increasing prices leave aspiring homebuyers hesitant, or will rate cuts expected in 2025 entice many back into the market? "Probably a bit of both," said CREA Senior Economist Shaun Cathcart.

How has all this affected home sales?

CREA says between February and March, home sale activity edged up only 0.5 per cent, holding around 10 per cent below the last decade's average.

How the volume of home sales across Canada has fluctuated over the years. Chart from CREA.

However, it doesn't look like home sales will stay in this position for long.

"After two years of mostly quiet resale housing activity, there's a feeling that things are about to pick up," said Larry Cerqua, chair of CREA.

"At this point, it’s hard to know whether buyers are going to wait for a signal from the Bank of Canada or whether they're just waiting for the spring listings to hit the market. Either way, neither of those is likely too far off."

Brokerage Royal LePage released a separate housing report on Friday as well.

Its experts said that the aggregate home price in Canada increased 4.3 per cent year over year to $812,100 in the first quarter of this year.

This number is expected to increase by 9 per cent in the fourth quarter of 2024 compared to Q4 of last year, when it was $789,500. That means that by fall/winter, the national aggregate home price is projected to hit $860,555.

"Given the strong start to 2024, the cadence of the market for the balance of the year points to a normally busy spring market that will lead into an uncomfortably busy fall," said Phil Soper, president and CEO at Royal LePage.

"It is clear we are rapidly transitioning away from a buyers' market and back to an environment where the seller has the upper hand."

CREA will publish April averages on May 15.