As we step into a fresh year, our aim is to provide you with updates on the dynamic landscape of real estate. In this blog post, we explore the current trends molding the Canadian housing market, impacting the choices of both buyers and sellers.

Home Sales Surge in December: 

The end of 2023 witnessed a remarkable rebound in home sales across Canada. Fuelled by a combination of falling interest rates and a surge in confidence, December experienced a nearly 9% jump in sales compared to November. This upward trajectory sets a positive tone for the real estate market in the coming months.

 Inflation Expectations Remain High: 

As we start a new year, we could like to share the recent trend of high inflation expectations. Over half of Canadian businesses anticipate an average inflation rate exceeding 3% for the next two years. Understanding these inflationary pressures is crucial for homeowners and potential buyers as they plan their financial future.

Market Balance and Its Impact: 

December brought about a notable improvement in market balance. A decline in new listings coupled with a rising demand pushed the national sales-to-new-listing ratio from 50% to a well-balanced 58%. This equilibrium suggests a stable market, likely resulting in flat to slightly higher prices in the upcoming months.

Anticipating Rate Cuts:

 The financial markets are abuzz with expectations of the first Bank of Canada interest rate cut in early January, with speculations of four additional 0.25% cuts throughout the year. These potential changes can significantly impact mortgage rates and financing options, making it essential for prospective homeowners to stay informed.