Market Monday - Monthly Real Estate Market Update: Decemebr 2024

Market Monday - Monthly Real Estate Market Update: December 2024

I am excited to share our Monthly real estate market update, highlighting key trends and changes across Canada, Ontario, and our local areas. This month has seen significant shifts influenced by economic policies and market dynamics.

Canadian Real Estate Market Overview

November 2024 has been a pivotal month for Canada's real estate market. The national average home price increased to $696,166, marking a 4.0% rise from October and a 6.0% increase year-over-year.

This surge reflects the impact of recent interest rate cuts by the Bank of Canada, which have stimulated buyer activity by making borrowing more affordable.

Key Changes from October to November

• Sold Units: Home sales in Canada reached 43,294 units in October, an 8.4% increase from September and up 22% year-over-year
• Pricing: The national benchmark home price was $707,700 in October, reflecting a slight decrease of 0.8% from September but an overall upward trend into November
• Available Units: Active listings increased by 11.4% year-over-year in October, indicating a more balanced market

Key Changes from November to December

• Sold Units: Home sales increased by 3.7% year-over-year in December, with notable gains in Ontario (+16.6%) and Manitoba (+11.5%) compared to November
• Pricing: The national benchmark home price experienced a slight uptick, driven by robust demand in several provinces.
• Available Units: New listings decreased by 5.1% in December, marking the third consecutive monthly decline, while active listings fell by 1.7%, indicating tighter market conditions

Condo vs. Home Markets

• Condos: The average selling price of condos decreased by 4.4% year-over-year to $512,300 in October
• Single-Family Homes: Prices decreased by 2.1% year-over-year to $783,100 in October

Ontario Real Estate Market Overview

Ontario's housing market has shown resilience with an average home price of $878,620 in October 2024, marking a 3.2% increase from September and a 2.6% rise year-over-year.

The province recorded significant sales growth, up 36.7% year-over-year.

Key Changes from October to November

• Sold Units: Ontario saw a substantial increase in home sales in October, with 15,893 transactions—up 19.9% from September
• Pricing: The average home price rose to $878,620 in October
• Available Units: Active listings rose to 60,530 units in October—the highest for the month in over a decade

Key Changes from November to December

• Sold Units: Ontario saw a substantial increase in home sales, with the strongest gains among Canadian provinces at +16.6% from November
• Pricing: Prices remained stable with slight upward pressure due to limited inventory.
• Available Units: Active listings decreased as new listings fell, contributing to tighter market conditions.

Condo vs. Home Markets in Ontario

• Condos: The condo market has been slower to recover compared to single-family homes.
• Homes: Single-family homes continue to be in demand.

Local Market Insights: Brantford and Surrounding Areas

In Brantford and surrounding areas such as Brant and Paris:

• Sold Units: In November, Brantford recorded an increase in home sales compared to October's 158 units sold through the MLS system
• Pricing Trends: The benchmark price for single-family homes was $704,100 in October but saw adjustments reflecting broader market trends into November
• Available Units: Active residential listings reached their highest levels for November in over a decade

Key Changes from November to December

• Sold Units: Home sales showed improvement over November figures, reflecting broader provincial trends.
• Pricing Trends: The benchmark price for single-family homes remained steady as demand persisted.
• Available Units: Inventory levels decreased slightly, contributing to competitive market conditions.

Market Potential and Red Flags

• Pros: Lower interest rates have made homeownership more accessible.
• Cons: A potential supply crunch could challenge buyers.
• Red Flags: Buyers should be cautious of overextending financially amid fluctuating market conditions.

Headline News Impacting the Market

Several key developments have influenced the real estate landscape this month:

1. Interest Rate Cuts by the Bank of Canada: Following a significant rate cut in October, another reduction is anticipated in December. These cuts are designed to stimulate economic activity by reducing borrowing costs
2. New Mortgage Rules: Set to take effect on December 15th, these rules will expand access to 30-year amortizations for first-time buyers and increase the insured mortgage limit to $1.5 million. This is expected to spur short-term market activity but may not have long-lasting effects due to limited applicability
3. Population Growth and Consumer Confidence: Canada's population growth surged by an impressive 3% annually in Q3, boosting housing demand alongside rising consumer confidence—the highest level in 30 months
4. Supply Constraints: A looming supply crunch is anticipated as single-family building permits drop significantly

Home Inspections and Market Predictions

At Hynesight Inspections , we completed numerous home inspections throughout November across our service areas. Our detailed reports continue to empower clients with critical insights into their prospective purchases.

Predictions for December and Beyond

• Expect continued growth in buyer activity as interest rates remain low.
• Anticipate increased competition for available properties due to limited supply.
• Look for potential price stabilization or modest increases as the market adjusts.

In conclusion, November has been a month of opportunity and caution for Canada's real estate market, we're committed to providing you with the expertise needed to navigate these changes confidently. Stay informed and prepared as we move into December and beyond!

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