September 11, 2024: The Best Week to Buy a House This Fall is...
Although this research originates from the U.S., the Canadian and U.S. housing markets tend to exhibit similar seasonal patterns. Based on current trends, the best week to buy a home this fall is expected to be from September 29 to October 5, 2024.
According to Realtor.com, the average U.S. homebuyer could save up to $14,000 during that week compared to the summer's median home price of $445,000. While specific savings figures may vary in Canada, the underlying factors influencing this period still apply to the Canadian market. Here’s why:
Falling Mortgage Rates: Mortgage rates are trending down. In Canada, we’re already seeing published 3-year fixed rates as low as 4.29%, providing much-needed relief to buyers.
Peak Inventory: Inventory typically peaks in early fall, which gives buyers more options to choose from and allows for more negotiating power. Sellers may become more flexible as they aim to close deals before the market slows down for the winter.
Summer Pullback in Demand: After the busy summer season, buyer demand tends to slow, making it an opportune time to enter the market and negotiate better deals on homes that didn’t sell over the summer.
Source: Realtor.com
OUR TAKE
Here at home, we typically see a surge in real estate activity between Labour Day and Canadian Thanksgiving (October 12th this year). While the U.S. Federal Reserve is yet to announce its anticipated rate cut this September, the Bank of Canada started reducing the overnight rate back in June. So far, we’ve seen three consecutive rate cuts, with 1-2 more expected by year-end.
With borrowing costs coming down and more listings hitting the market, we’re likely to see an uptick in sales over the next few weeks. It’s important to note that monetary policy changes typically take 12-18 months to fully impact the market. However, with rates already easing and inventory peaking, this fall may present an optimal opportunity to enter the market and find a home that suits your goals and lifestyle. You may not see the same favourable conditions come January/February 2025, so now could be the time to negotiate and secure a deal.
The Most Searched Google Topic Is...
It’s not the U.S. or potential Canadian elections (earlier than planned), global conflicts, or even Taylor Swift dominating search engines these days—it’s "Mortgages"! According to a recent Financial Post article, the surge in mortgage-related searches is driven by one primary factor: borrowing costs. With three consecutive rate cuts from the Bank of Canada and expectations of more to come, Canadians are finally tempted by the prospect of lower borrowing costs.
Who’s Doing the Searching?
Mortgage Renewers: Many Canadians who locked in low fixed rates during the pandemic are preparing for their renewals. As they come off these historically low rates, they’re gearing up to navigate the current higher rate environment.
Variable Rate Borrowers: These borrowers have endured rate increases over the past couple of years but are now seeing a bit of relief as rates start to come down. Many are monitoring the market for better terms.
Refinancers: Those buried under high-interest debt are looking to refinance and consolidate at lower rates. With rates declining, refinancing is becoming an increasingly attractive option.
领英推荐
Prospective Homebuyers: Many people are sensing that a combination of falling fixed mortgage rates and record population growth will drive up home prices, particularly for single-family homes. These prospective buyers are keen to secure financing before the market heats up.
So knowing what people are searching on Google, can we now predict where our housing market is headed over the next few months?
OUR TAKE
In our view, this reflects a clear interest from various segments of the population, indicating that a housing market resurgence could be on the horizon. As fixed mortgage rates fall to two-year lows and more buyers enter the market, demand for homes—especially single-family properties—could spike.
The combination of lower borrowing costs, population growth, and high demand for housing (esp. low rise homes) suggests that the housing market is likely headed for more activity in the coming months. As mortgage borrowers position themselves to take advantage of these conditions, we could see a renewed push in home purchases and potentially rising prices.
ALMOST MADE THE CUT
Dubai has emerged as a powerhouse of style, with the region’s leading fashion week, world-famous shopping and luxury residences from global fashion houses, writes Mandi Keighran
The discovery of oil in the 1960s transformed the United Arab Emirates (UAE) almost overnight, and the capital of Dubai quickly developed into a city built on superlatives: the world’s highest building, the deepest swimming pool, the fastest cars and the most luxurious resorts.
We're privileged to be your source of information and understanding of what's happening within our local economy and the real estate landscape. If you have any questions or would like to chat further, please don't hesitate to reach out.