Reflecting on the past year and looking ahead to what’s on the horizon for 2024, here are some of the trends that are likely to play the biggest roles in the Canadian real estate market.
The stats: A deeper dive on home sales & outlook for 2024
In line with Re/Max’s housing price outlook for 2024, the market is likely to be active in the first quarter and into the spring — a trend that is already starting to materialize. Interest rates, higher demand and low inventory will continue to heavily influence the market this year.
The interest rate effect:
Over the past year, Canadians faced some of the highest interest rates seen in decades. This, coupled with the lack of housing inventory, resulted in a softening market in the latter half of 2023.
As we look ahead, with another possible pause or even a slight decline in interest rates on the horizon, interest rates will likely be a prominent influence on market activity — especially considering that many Canadians have taken a “wait and see” approach when it comes to their housing ambitions.
Nationwide insights, Re/Max brokers and agents in key regions from coast to coast provided their market insights. Here’s how these influencing factors are expected to play out regionally in 2024:
In Western Canada, major and growing cities such as Vancouver, Nanaimo, Saskatoon and Edmonton are anticipating a rise in residential prices between 2 and 4 per cent. In contrast, Victoria and Regina are anticipating a slight decrease of 2 per cent.
Ontario’s more populous markets are seeing increases from 2 to 7.5 per cent, while smaller markets that boomed during the pandemic could experience a decline of up to 5 per cent and a steady state in markets across the GTA and up north.
In Montreal, prices will likely remain steady, although interest rates could encourage more homeowners to list their properties.
Atlantic Canada, once a haven for Canadians seeking affordability, is anticipating modest increases across the board of around 3 per cent in the region’s largest and growing markets.
