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Written by: Relocation Services Group

Following a weak second half of 2023, “home sales over the last two months are showing mild signs of recovery”, according to the Canadian Real Estate Association.  In the GTA, January sales increased year over year but home prices are slightly down.  Additionally, the average time on the market has also increased from 41 days 54 days.  So, if your home is currently listed in the GTA, be advised that this seems to be on-trend for the current times.  In other areas of Ontario, increases are being seen in Grey-Bruce-Owen Sound (3.5%) and Windsor-Essex (8.8%). And major gains were recorded in Sudbury (21.8%), London-St. Thomas (28.7%), and Kingston (32.3%). While a major decrease in sales was reported in Sault Ste. Marie (19.4%), in Niagara not much has changed in sales but a higher months supply have contributed to modest declines in price.  Home prices in Hamilton and Burlington are stable. In the nation’s capital, overall home sales year over year were down by 11%.

Some financial experts are indicating that a reduction in the interest rate may contribute to an increase in housing sales and an increase of prices, but the Bank of Canada has not indicated that this would occur in 2024.  During his final speech of the year, Bank of Canada governor Tiff Macklem said that “he thinks 2024 will be a transition year for the economy. He believes that previous interest rate increases will continue to slow down the economy and lower inflation. Because he wants to see trends continue in that direction, he doesn’t want to make any promises of lowering the rate.”  How does the interest rate affect Canadians? The most significant question will be if Canadians will be able to afford the home, they’re already living in. Notably, there is concern that a batch of upcoming mortgage renewals will further reduce people’s disposable income.

An additional reason for lack of affordability is lack of supply.  Construction and real estate delays have been reported with firms in these sectors saying some projects had been put on hold over the past 12 months due to high interest rates causing demand to decline, financing costs to rise, high construction costs and general economic uncertainty.

If you’re considering a downsize, upsize or relocation of any kind in 2024, call the experts of Relocation Services Group.  Proudly working with QCC/Applaud for over 20 years and with more than 60 years of insider-industry knowledge, we will assist you with finding consummate professionals in your area.  Whether moving locally or long-distance we will assist you in arranging your household move and get you cash back from your real estate transactions when you work through this program with Applaud.

Get a free quote today, call 1-866-865-5504 or email info@relocationservicesgroup.com