New report reveals anticipated increases in value for Canadian residential real estate in 2024
Canada’s residential real estate market is a key component of the economy and ownership is one of the pillars of the Canadian Dream, and investing in it remains as strong as ever.
Three quarters of participants in a new poll by RE/MAX Canada said that homeownership is the best long-term investment, unchanged from a year ago, although in the near term expectations for 2024 are mixed.
The firm’s network of brokers and agents expect that almost two thirds of Canadian regions will see prices rise next year by between 2% and 7.5%, around one fifth are expected to be flat, while a similar share is expected to see prices fall by 2-5%.
"It's been a challenging year for Canadian homebuyers and sellers, who have been feeling the effects of a severe housing shortage and the high cost of living, but much like Canada's housing market, Canadians have stayed resilient. Historically, real estate has given owners excellent returns and strong financial security – and that hasn't changed," said Christopher Alexander, President, RE/MAX Canada. "The slower market we've been experiencing across the country this fall could be an early indicator of an active 2024, as reflected in the modest price increase and sales outlook for next year, and the balancing of conditions in several regions across the country."
Climate change impact
A Leger poll as part of the RE/MAX 2024 Housing Market Outlook Report reveals that buyers want governments to ensure that increased housing supply is in the right places especially with four in ten respondents saying climate change will impact the location of their home buying.
It also found that 21% are exploring alternative home ownership or opting for inter-provincial/city moves (17%) in search of greater affordability in the neighbourhood they love.
Over half of poll participants are concerned that further interest rate increases will impact their ability to engage in the real estate market in 2024 but 47% said that Canada is one of the best countries to buy or own real estate.