A new housing market report is expecting more sales activity next year across Canada with prices increasing by 0.5 per cent. According to the RE/MAX 2024 Housing Market Outlook Report, the majority of Canadians remain confident about jumping into home ownership despite higher interest rates and a housing shortage. Further rate hikes in 2024 still remain a concern, one that could impact the decision-making process
“It’s been a challenging year for Canadian homebuyers and sellers, who have been feeling the effects of a severe housing shortage and the high cost of living, but much like Canada’s housing market, Canadians have stayed resilient, Christopher Alexander, president of RE/MAX Canada, stated in the report. “Historically, real estate has given owners excellent returns and strong financial security – and that hasn’t changed.”
Housing market conditions will likely vary from region to region with 42 per cent balancing out. The average residential sale price in most regions is expected to increase between two and 7.5 per cent in 2024. Eighteen per cent of markets are expecting a decrease between two to five per cent.
Home-buying trends in 2024 point to climate change as key factor impacting more than four in 10 Canadians when it comes to where they purchase. About 21 per cent are looking to move between provinces so they can afford a home in a favourable neighbourhood. Those findings come from a Leger survey commissioned by RE/MAX Canada as part of the report.
Regional outlook
Brokers and agents for the firm find many homebuyers will continue looking for primary residential properties with rental potential to offset mortgage payments and the rising cost of living. In areas of Ontario, buyers also desire greater access to public transportation, green space and preferred schools.
In B.C., the average residential prices are anticipated to rise by two per cent in Metro Vancouver and Nanaimo. The same applies for Saskatoon, Sask. Edmonton will likely see a four per cent increase.
Regions such as Victoria, B.C., and Regina, Sask. are anticipating a modest two-per-cent decrease in sale prices. Saskatoon and Edmonton are expected to favour sellers next year, while Victoria will shift to a buyer’s market.
The market will likely feel ongoing pressure from interest rates and low supply, especially among first-time buyers in Edmonton, Saskatoon and Nanaimo. Many first-time homebuyers are looking for rental income on primary residences to afford a dwelling.
Ontario
Prices are anticipated to remain unchanged in Mississauga, Brampton, North Bay, and Kenora in 2024. Peterborough and the Kawartha’s and the Greater Toronto Area (GTA) are both anticipating a slight decline of three per cent in average residential prices, while Durham Region and Grand Bend are anticipating a decline of five per cent. Kitchener-Waterloo is anticipating a decrease of eight per cent in average residential sale prices.
Prices are anticipated to rise by two per cent in Thunder Bay and Ottawa; three per cent in London; 3.5 per cent in Hamilton, Niagara and York Region; four per cent in Sudbury and Burlington; 4.5 per cent in Kingston; five per cent in Muskoka and Haliburton; seven per cent in Oakville and Simcoe County; and 7.5 per cent in Windsor and Sault Ste. Marie.
Atlantic Canada
Modest sale price increases are in the forecast for the majority of regions across Atlantic Canada. In Halifax, the sale price in unlikely to change. All markets are expected to continue on as sellers’ markets in 2024, except St. John’s, N.L. area, which could regain balance.
The cost of living is one of the largest trends in the Moncton, St. John’s, Fredericton, Saint John and Halifax markets. Current economic conditions and ongoing affordability challenges have led first-time homebuyers to also look for semi-detached homes or properties with rental income potential.
