Canadian Housing Market Outlook in 2024
2 min read.
Looking ahead to the Canadian housing market in 2024, experts and analysts anticipate a gradual recovery, driven by stabilized interest rates and a return in demand. The Canadian Real Estate Association (CREA) projects a 13.9% increase in national home sales to 561,090 units and a 4.7% rise in the national average home price to $702,200 in 2024.
The primary reason for this optimism is the growing demand from buyers who deferred their purchases in 2023. A survey by RE/MAX Canada reveals that 73% of Canadians continue to view home ownership as the optimal investment, showing consistency with the same thoughts despite economic uncertainties and rising property costs.
Christopher Alexander, President at RE/MAX Canada, mentioned that while British Columbia and Ontario may face challenges in specific areas, he remains cautiously optimistic about the overall situation. Notably, RE/MAX Canada highlighted that the Greater Toronto Area is expected to witness a 3% decrease in prices to $1.09 million in 2024. Housing demand is poised to rebound as confidence returns, with buyers capitalizing on lower prices and favorable mortgage rates.
However, there are also some challenges that could affect the housing market in 2024. One prominent concern is the worsening housing supply issue in Canada, encompassing rental units, new homes, and existing properties. New listings have sharply declined, hitting 20-year lows and creating a substantial imbalance between supply and demand, thereby driving home prices higher.
The overall outlook for the Canadian housing market is poised for a gradual recovery in 2024. With a decrease in house prices in the Greater Toronto Area, the market becomes favourable for prospective buyers considering entering or staying in the market.
References
DeLaire, M. (2023, November 24). Home prices could drop by 10 per cent in early 2024: TD. CTVNews. https://www.ctvnews.ca/canada/home-prices-could-drop-by-10-per-cent-in-early-2024-td-1.6658734
Doherty, B. (2023, November 28). Canadian home prices expected to see sluggish growth in 2024, RE/Max says. Mortgage Rates & Mortgage Broker News in Canada. https://www.canadianmortgagetrends.com/2023/11/canadian-home-prices-expected-to-see-sluggish-growth-in-2024-re-max-says/
McAlinden, F. (2023, December 1). Is Canada’s housing market set for a resurgence in 2024? Canadian Mortgage Professional. https://www.mpamag.com/ca/mortgage-industry/market-updates/is-canadas-housing-market-set-for-a-resurgence-in-2024/468639
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