As Canada’s housing market enters a phase of ‘great adjustment,’ homeowners and prospective buyers face a mix of challenges and opportunities. With the Bank of Canada holding interest rates at five percent and predictions of rising home prices, understanding these market dynamics is important.
ComFree is here to guide you through these changes and what they mean for the real estate landscape.
The decision to maintain the key policy rate at five percent marks a period of stability for mortgage holders, especially those with loans tied to prime interest rates. This steady rate, the highest in 22 years, brings some relief amidst the high cost of borrowing.
According to a recent Royal LePage report, Canadia home prices in Canada are expected to rise by 5.5% by the end of 2024, reaching an aggregate price of $843,684. This increase suggests a return to pandemic peak prices and indicates a potential rebound in the housing market.
The ‘great adjustment’ means adapting to mid-single-digit borrowing costs, a significant shift from the ultra-low interest rates experienced over the past decade. For many Canadians, this adjustment will require careful financial planning and strategy, particularly in high-demand markets like Toronto and Vancouver.
The impact will vary regionally. Calgary, for instance, is forecasted to see an 8% increase in home prices by the end of 2024, outperforming other major cities due to its relative affordability. In contrast, Vancouver‘s price growth is expected to be more modest.
If you’re considering refinancing or selling, now is the time to evaluate your options. Understanding how these market changes affect your property’s value and mortgage renewal is key.
First-time buyers should prepare for a new normal in mortgage rates. With predictions of a gradual easing of interest rates in late 2024, it’s important to stay informed and flexible in your home-buying plans.
ComFree Realty offers expert advice tailored to these evolving market conditions. Whether you’re buying, selling, or just exploring your options, we’re here to help you navigate the market confidently.
Explore your real estate opportunities with ComFree Realty. Visit our Property Listings or Contact Us for personalized advice.
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* Only when the buyer comes direct, otherwise the seller may choose to negotiate a commission with the buyer’s agent.
