January 2024 saw a promising surge in home sales compared to last year, marking a notable annual increase. This upward trend coincided with the advantages some homebuyers began to enjoy due to lower borrowing costs associated with fixed-rate mortgage products.
While new listings also saw a year-over-year increase, it was at a slightly lower rate compared to sales. This dynamic has resulted in tighter market conditions compared to a year ago, potentially indicating a resurgence in price growth as we transition into the spring market.
| TOTAL SALES | 4,223 | Last year: 3,083 | 37.0%
compared to last year |
| |
| AVERAGE PRICE | $1,026,703 | Last year: $1,036,925 | -1.0% compared to last year |
|
| LISTING DAYS | 37 | Last year: 29 | 27.6%
compared to last year |
|
|
Looking ahead, TRREB Chief Market Analyst Jason Mercer predicts a further uptick in home sales once the Bank of Canada cuts its policy rate, likely in the second half of 2024. This anticipated increase in demand, coupled with constrained listing supplies, is expected to intensify competition among buyers, consequently exerting upward pressure on selling prices over the next two years.
According to TRREB CEO John DiMichele, lingering policy issues need addressing despite the positive momentum. DiMichele emphasized the necessity of federal reflection on applying the Office of the Superintendent of Financial Institutions (OSFI) mortgage stress test, particularly in varying interest rate cycles.
Additionally, there is a call for a provincial focus on constructing 1.5 million new homes. At the same time, municipalities are urged to consider the impact of property tax increases without consistent support from higher government levels. Addressing these issues, particularly facilitating entry for first-time homebuyers, is crucial for alleviating pressure on the ownership and rental markets.
The January 2024 housing market presents positive developments and challenges, signalling a dynamic landscape ahead as stakeholders navigate evolving market conditions and policy considerations.
|
|
|
