The average home price will be 4.7% higher in 2024 than it was in 2022, according to the CREA

Key Highlights :

1. The Canadian Real Estate Association expects the average price of a home to end the year 4.8 per cent lower than 2022, but says prices will rise by roughly the same amount in 2024.

2. The forecast accounts for little change in month-over-month sales seen since summer 2022 and the modest monthly gains recorded in February and March, as buyers edged closer to make purchases.

3. On a seasonally-adjusted basis, sales reached 33,833, about one per cent higher than they had been in February. March marks the second consecutive month of higher sales, Rishi Sondhi of TD Economics pointed out. Sondhi attributed much of the boost to interest rates stabilizing, which helped "buyer psychology" and a solid job market.

4. With supply at historic lows, Oudil said homes are not only selling but selling faster, but it has not been enough to entice some sellers to list their properties.

5. People don't sell during a down market for several reasons, said Robert Kavcic, a senior economist with BMO Capital Markets. Some don't have to sell because the job market is strong and there are fewer mortgage delinquencies because the Office of the Superintendent of Financial Institutions has stress-tested most buyers and investors have a strong rental market to fall back on.

The Canadian Real Estate Association (CREA) has released its latest forecast for the Canadian housing market, projecting a 4.8% decline in the average price of a home by the end of 2023. Despite this correction, the association predicts that prices will rise by a similar amount in 2024. CREA's forecast is based on several assumptions, including low interest rates, slow economic growth, and a continued lack of inventory.

Jean-Paul Vigneault, CREA President and CEO, stated that "the Canadian housing market is still very much in a correction, but we expect prices to rise by roughly the same amount in 2024 as they did in 2022." However, Vigneault also noted that there is still significant room for price growth, particularly in the Toronto and Vancouver markets.

This forecast is consistent with predictions from other analysts, such as the Royal LePage House Price Survey, which projected a 4.3% increase in the average price of a home in Canada by 2024. CREA's forecast assumes that interest rates will remain at their current level of 1.5%.

The Canadian housing market has been undergoing a correction for the past two years, and CREA's forecast anticipates that this correction will continue into 2024. One of the main reasons for this correction is the lack of inventory, and the association predicts that there will only be 1.8 months of inventory available in Toronto and 2.5 months of inventory available in Vancouver in 2024.

CREA also forecasts that the average price of a home in Canada will be $481,000 in 2024, up from $470,000 in 2022. The growth is largely driven by the Toronto and Vancouver markets, which are expected to continue to expand.

For potential homebuyers, this forecast suggests that 2023 may be a good time to enter the market, as prices are expected to be lower. However, it's important to keep in mind the potential impact of rising interest rates or a change in economic conditions. For those looking to sell their homes, it may be worth waiting until 2024 when prices are projected to rebound.

Continue Reading at Source : princegeorgecitizen