National aggregate home prices increased 4.3 per cent last year across Canada.

That is according to data from the latest Royal LePage House Price Survey released Monday.

However, prices fell 1.7 per cent on a quarter-over-quarter basis to wrap up the year.

Officials said this is an indication that elevated borrowing costs continue to affect market activity.

“I believe the narrative suggesting that the housing market will rebound only when the Bank of Canada lowers rates misses the mark,” Phil Soper, president and CEO of Royal LePage, said in a news release.

“The recovery will begin when consumers have confidence the home they buy today will not be worth less tomorrow. We see that tipping point occurring in the first quarter, before the highly anticipated easing of the Bank of Canada’s key lending rate.”

Inventory levels continue to climb but officials said they remain well below what we need today and will continue to need in the future.

The real estate agency said this will put upward pressure on home prices as temporarily sidelined buyers return to the market.

Royal LePage is forecasting a 5.5 per cent year-over-year increase in home prices in the fourth quarter of 2024.