A quick and educated Prediction of the 2024 Canadian real Estate market!

Hello 

 

Inventory in the Greater Toronto Area for homes is around 4.2 Months, bordering a buyer's market.  Condos are already a buyer's market at around 6 Months of inventory.  All of a sudden selling a home has become increasingly difficult and competitive.   With so few buyers interested in buying right now and even fewer who are comfortable and qualify with today's high-interest rates.

 

The Zoocasa report in October shows that on average there is a 20% discrepancy for listings between what they are listed for and what is the actually selling price (Today's fair market value).  In some cities the discrepancy is as high as 40% now!

 

Reviewing the next rate cuts as probably in the 3rd quarter of 2024, or potentially spring along with continuious high immigration rates.   

 

My prediction is the market will remain a borderline buyers market in late spring of 2024.  With a rate cut, the market may finally start to breathe in the fall of 2024.   With potential further rate cuts after that, assuming the first one happens, then the market will return to a more standard one in the Spring of 2025 with lots of interest and movement we were accustomed to.  

 

It would appear that if you were a buyer, you have the next 8 months to capitalize on a great deal before the potential of the next market shift.  

 

For sellers, if you need to sell, you will have to price at a current fair market value.  The first potential for more demand appears to be in the fall of 2024.   Prices may start to rebound somewhat in the Spring of 2025!

 

Let's see if time is kind to this prediction in 2024 and 2025!