Demand for Homes in one of Canada’s Top Cities Expected to Grow in 2024
Home sales have slowed in one of Canada’s largest cities, however, demand for homes is predicted to grow in 2024, according to Rennie & Associates Realty Ltd.
Metro Vancouver experienced a slowdown in home sales as 2023 came to a close, according to the rennie landscape fall 2023 review. September 2023 reported less than 3,000 sales, the lowest number of home sales since February 2023 thanks to higher borrowing costs, forcing buyer behavior to change and resulting in fewer purchases.
While sales have slowed, pent-up demand is expected to grow, according to the report. Rennie estimates that based on historical per-capita average sales combined with recent population growth, 20,000 homes that would have been bought and sold in the last 18 months did not due to the Bank of Canada rate hikes. As interest rates begin to soften and housing demand continues to grow these sellers and buyers are expected to enter the market.
Rennie explains, that as the Bank of Canada begins to lower interest rates with the now slowing economy, Canadians can expect interest rates to decline. Where a neutral interest rate is noted between 2.5-3%, Canadians can expect a decrease of another 2% in Q2 of 2024 from the 4% interest rate recorded in September 2023, according to the report.