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“How’s the market?” A question our team has been addressing more and more in the last month as we navigate the 2024 real estate market and try to forecast what it will look like for our buyer and seller clients. If there was ever a time to have a crystal ball with all the answers, it would be now.
That being said, we have been watching the pulse of what has been happening closely, and speaking with other professionals in our industry to help provide you with our outlook for the first half of 2024 and what you can expect to see for the rest of the year. The real estate market follows a cycle and despite the uncertainty and lagging pace of 2023, we are confident that this year will paint a much brighter picture for those looking to make a move.
What we can tell you is that the real estate landscape in our area has been experiencing a spirited resurgence in activity throughout January and February. In the dance of supply and demand, homes that are both well-priced and well-presented are grabbing the attention of eager qualified buyers resulting in swift and successful transactions.
The combination of rising buyer confidence, low inventory and potential interest rate adjustments (on the variable mortgage side) has set the stage for a healthy and active Spring market. Conditions in offers allow buyers to complete their due diligence and make informed decisions with confidence. Due to continued low home inventory, sellers continue to see healthy sale prices in a reasonable time frame.
One of the key catalysts influencing market dynamics is the influence of interest rates and their trajectory. With talk of variable rates reducing as early as April, the potential for a considerable influx of buyers looms on the horizon. When the interest rates begin to dip we expect to see an immediate uptick in activity especially in highly desirable areas. If inventory remains low, we could see a competitive environment especially at the lower price points as buying power will likely increase with the dropping of the rates.
Currently, we are still in a very high-priced market compared to many areas in Canada. With increased immigration and many returning to the office environment, good quality homes with an attractive price tag will be poised for success with newcomers and first-time buyers seeking the opportunity to purchase.
The prevailing economic conditions indicate a cautiously optimistic approach by central banks which contributes a sense of stability in borrowing costs. This is likely to benefit buyers and existing homeowners looking to refinance, or upgrade their property. We have also noticed an increasing need for multi-generational homes, with families choosing to purchase property together to make homeownership attainable. In-law suites and properties with supplemental income potential are a hot commodity.
For those contemplating a move, now is an opportune time to secure a favourable interest rate and open up discussions with your real estate and financial team. The evolving economic market suggests that staying informed about interest rate trends, bond yields, and staying updated on bank announcements will be key to navigating the 2024 real estate market.
As always, in the world of real estate, opportunities are out there for those ready and willing to seize them. We have our fingers on the trigger and will keep you in the know as things unfold. Whatever your plans are for 2024, we are here to help you strategize and plan accordingly.
Reach out to our team with any questions and let’s create a tailored strategy for you and your real estate goals.
By: Rebecca Plouffe
Real Estate Broker
Coldwell Banker Community Professionals, Brokerage
@rebeccaplouffehomes
