Monthly Market Update
Monthly Market Update
January 2024
December Market Update
Happy New Year!
It's hard to believe 2025 has arrived; we have had a lot of changes, and many ups and downs in the real estate industry in 2024. We finished the year with buyers and sellers feeling more optimistic than they were earlier in the year and we are hoping this continues well into the coming year.
A total of 6,893 properties were sold in 2024, up 11% from 6,207 in 2023. “Prices have remained steady for two years, helping buyers and sellers navigate with confidence. However, while there were more months with over 3,000 listings than in previous years, inventory remains low compared to long-term averages. If demand rises without sufficient supply, we could see upward pressure on prices.. With the holiday season now over, Sellers are starting to think of putting their homes on the market; so we will start to see the listing numbers increase this month.
2024 marked a shift in Canada’s housing and mortgage market, with interest rate cuts, eased inflation, and new government initiatives aimed at improving affordability.
Some of the key highlights and changes are listed below.
Key Highlights:
• Rate Cuts: The Bank of Canada cut rates five times, reducing the overnight rate to 3.25%, easing borrowing costs for mortgage holders.
• Inflation Relief: Inflation fell to 2.0% by November, offering consumers some financial relief.
• Housing Rebound: Home sales and prices rebounded, with average prices reaching $694,411 (+7.4% YoY).
• Mortgage Renewals: $251 billion in mortgages renewed at higher rates, increasing monthly payments by $400–$500 on average.
• Amortization Adjustments: Falling rates helped borrowers reduce previously extended amortization periods.
• Rising Delinquencies: Early-stage delinquencies began to rise, reflecting ongoing financial pressures.
Policy Changes:
• Higher purchase price caps for insured mortgages.
• Introduction of 30-year amortizations for first-time buyers.
• New programs promoting secondary suite development to address housing supply shortages.
If you are thinking of selling in the Spring it might be a good idea to consider listing sooner than later. Now is a good time because our listing inventory low, so your home will have less competition, get more showings, and could result in getting a higher price than in the peak spring season when there is an abundance of listings competing with yours.
If you would like to know the value of your home or to see our marketing plan; please give us a call or send us an email to arrange a time.
Sincerely,
Michele, Mark and Eric
