Canada. Overview and prospects for the real estate market in 2024
According to experts, real estate sales have slowed down, especially in the second half of 2023, and this also affects sellers, as the time spent on the market increases and prices are adjusted downwards.
By the way, general statistics for the province say that home sales were reduced by 16%, but prices remained at the same level at the end of 2022.
Sales of condominiums decreased by 23%, and prices dropped by only 2%.
Taking into account that the decision to buy or sell is absolutely conscious or sometimes necessary, then each individual situation is seen as unique.
Demand for Quebec real estate has always been higher than in other provinces, due to the fact that prices, even with the rise, remained more “conservative” compared to Toronto and Vancouver.
For this reason, buyers from Ontario and British Columbia are eager to purchase homes here.
It is expected that this situation will continue in 2024
The trend of “exodus” from cities continues, and will most likely continue in 2024, due to rising prices, taxes and a not entirely favorable environmental situation.
Buyers are seeking to get better conditions in terms of price, size of houses, territory and to live in the peace and quiet of the suburbs, surrounded by nature.
The prospects for the real estate market in 2024 will most likely be as follows: a change in the behavior of interest rates and, in connection with this, a possible series of corresponding good news.
Overall, the residential real estate market should stabilize in 2024 at a level of activity comparable to that of 2023, with a slight drop in sales of 2%.
It is expected that in 2024, private houses will be in greatest demand. Many municipalities are more willing to issue permits for the construction of condominiums, or, at most, townhouses, because they want to get more tax revenue according to the principle “more doors - more money.”
For this reason, private houses will be in greatest demand - fewer and fewer of them are being built and farther from cities.
The Bank of Canada is expected to begin cutting its rate starting in the first half of 2024, with the policy rate likely to remain at 4% by the end of the year.