Canadian Real Estate Market Update: December 2024
The Canadian real estate market had an interesting close to 2024, with key cities like Toronto, Vancouver, and Calgary experiencing unique trends. Let’s break down what happened in these markets and what it could mean for buyers and sellers moving forward.
Toronto: Real Estate Fizzles in December
If you’ve been following Toronto’s real estate market, December 2024 brought some surprises. Historically, December tends to be a quieter month for real estate, but this year hit a new low—marking the second-worst December in over a decade.
Key Stats:
- Sales: Home sales were down 2.4% compared to December 2023, according to the Toronto Regional Real Estate Board (TRREB).
- New Listings: Listings plunged by 38.2% year-over-year, leaving fewer options for buyers.
- Rental Prices: Rental prices especially in condo's have dropped 3.2% year over year
What’s Driving the Decline?
- Higher Interest Rates: Borrowing costs are higher, making mortgages less affordable for many buyers.
- Affordability Challenges: Even with the market cooling, Toronto’s prices remain high, keeping buyers on the sidelines.
- Economic Uncertainty: Inflation and concerns about the economy have made both buyers and sellers more cautious.
What It Means for Buyers and Sellers:
- For Buyers: Less competition could mean opportunities to negotiate better deals. However, higher interest rates may still limit affordability.
- For Sellers: Pricing your property realistically is key in a market where homes aren’t moving as quickly. With fewer listings, you might still stand out due to limited inventory.
Vancouver: Sales Rise, but Inventory Remains High
Over on the West Coast, Vancouver’s real estate market showed a different trend. Sales in December 2024 actually increased year-over-year, but inventory levels remained much higher than usual.
Key Stats:
- Sales Growth: Residential home sales were up compared to December 2023, signaling renewed buyer interest.
- Inventory: The number of homes for sale remained above seasonal averages, giving buyers more options to choose from.
What’s Happening in Vancouver?
- More Balanced Market: Higher inventory levels have shifted the market closer to balance, reducing pressure on buyers.
- Local Demand: Despite high prices, demand remains steady as Vancouver continues to attract buyers looking to settle in this vibrant city.
What It Means for Buyers and Sellers:
- For Buyers: More options and less competition make this a good time to shop around. Be prepared to negotiate.
- For Sellers: With higher inventory, it’s important to make your property stand out. Well-staged and reasonably priced homes are more likely to attract offers.
Calgary: A Strong Close to the Year
Calgary’s real estate market ended 2024 on a high note, showcasing resilience and strong sales despite broader economic concerns.
Key Stats:
- Sales: Calgary’s sales figures for December 2024 were among the strongest in the country, buoyed by steady demand.
- Inventory: Unlike Vancouver, Calgary’s inventory remained tight, keeping upward pressure on prices.
Why Calgary Stands Out:
- Affordability: Calgary continues to be more affordable than Toronto or Vancouver, attracting both first-time buyers and investors.
- Economic Stability: The city’s relatively stable economy has helped maintain buyer confidence.
What It Means for Buyers and Sellers:
- For Buyers: Act fast. With tight inventory, desirable properties are moving quickly.
- For Sellers: This is a great time to sell, as strong demand and limited supply can help you secure favorable terms.
National Trends to Watch
While each market has its unique story, a few overarching trends are shaping Canada’s real estate landscape:
- Interest Rates: Higher borrowing costs are impacting all markets, though the effects vary.
- Regional Differences: Cities like Calgary remain resilient, while Toronto and Vancouver are seeing shifts toward more balanced conditions.
- Economic Uncertainty: Inflation and other economic factors are making buyers and sellers more cautious across the board.
Final Thoughts
Whether you’re in Toronto, Vancouver, or Calgary, Canada’s real estate market is full of opportunities and challenges. For buyers, now might be a chance to find a deal—especially in cities with higher inventory. For sellers, understanding your market’s unique dynamics and pricing your property strategically will be key.
No matter your situation, staying informed and working with knowledgeable professionals can help you navigate this ever-changing market. After all, real estate is always about timing, location, and knowing how to make the most of what’s happening right now!
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