What’s Ahead for the Housing Market
It's hard to figure out exactly what will happen in the market in 2024. While some say home prices could drop as much as 10% thanks to a surge go housing supply in a couple provinces (we certainly aren't seeing that here in Alberta right now). While others, such as our friends at Buffini, suggest that due to "higher-for-longer" interest rates and lack of inventory, home sales are project to rise slightly throughout most of the country.
What we do know
Canada is consistently ranked among the top countries to live, known for its high quality of living and strong job market. Vancouver, Calgary and Toronto are all in the top 10 cities on the Global Liveability Index for 2023. It is a very appealing place to move to and with Canada expected to welcome 110,000 new immigrants in 2024, we believe we will continue to see pressure on the housing market.
A look at rates
A total of 60% of homeowners will need to renew their mortgages in the next three years. According to economists polled by Reuters, The Bank of Canada will start cutting interest rates in the second quarter of next year as inflation and the economy slow. Their forecast is that borrowing costs will drop by at least one percentage point by end-2024. In the same article, Reuters suggests that all but one of nine property market analysts talked to said purchasing affordability next year would improve. But seven of nine respondents said the proportion of home ownership to renters would decrease over the coming five years.
Iy is hard to predict what will happen (if it was easier, I'd be a lot richer). I always say that every buyer, seller, home owner, renter, situation is unique. That''s why it's best to discuss your current situation with an experienced realtor. Here, we have a huge GAS (give a sh*t) factor. We don't want to see anyone in a housing situation they don't love. Give us a call at 403-207-1748 if you want to chat about your needs in 2024. Coffee is always on us.