A Housing Market Forecast for 2024
Wouldn’t it be nice to have a crystal ball to predict everything that will happen in the housing market? I know I’d love it! Despite not having a crystal ball, I’m happy to share predictions from experts in the real estate market with you today!
Interest Rates in 2024
Interest rates have been a difficult issue for many buyers who require a mortgage. In December 2023, the Bank of Canada revealed the rate is staying put at 5 percent until at least January 24, 2024, when the bank will have its next interest rate announcement. The last time we saw interest rates at this roaring level was back in 2001!
The Bank of Canada has hinted at reducing its policy rate towards the end of the following year. This anticipated decrease in mortgage rates in 2024 should offer some respite to prospective homebuyers.
Homebuyers in Canada 2024
The average house price in British Columbia decreased by 2.7% to $970,000 in 2023. This downward trend is expected to reverse with a modest increase of 0.5% in 2024, to $1,018,500.
Interest rates are unlikely to return to the lows seen in 2021. If you’re house hunting early in 2024, there likely won’t be as much competition as we saw in 2023 ( ie. fewer multiple offers) but with the current interest rates, consulting a mortgage broker is your best first step.
If you consider waiting to buy until later in 2024, you might have the opportunity to benefit from a potentially lower rate. However, this delay could also mean facing a more competitive housing market with more buyers and possibly higher house prices!
Victoria Real Estate in 2024
Victoria’s housing market is nicely balanced at the moment and is expected to shift towards favouring buyers in 2024! This change will hopefully be marked by a rise in available properties, offering more options for those looking to purchase a home. The city is predicted to see a 2% drop in average residential property prices in 2024, with prices likely to decrease in the first half of the year before stabilizing in the latter half. However, the volume of sales transactions is anticipated to remain stable.
The three neighborhoods projected to be most sought-after in Victoria next year are Saanich East, Langford/Colwood, and downtown, driven by liveability and desirability including affordability, proximity to green spaces, amenities, and workplaces, with a high demand for single-detached homes.
Let me leave you with a common expression in the real estate world: don’t wait! If you come across your dream home, seize the opportunity regardless of the current market conditions, as market trends can be unpredictable. Contact me today to get started on your house-hunting journey!