Why 2024 is a Great Year to Buy or Sell a Home

Dated: December 29 2023

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Why 2024 is a Great Year to Buy or Sell a Home in B.C.

The real estate market in British Columbia has been one of the most resilient and rewarding sectors in the Canadian economy, despite the challenges posed by the pandemic and the rising interest rates. However, as the economy recovers and interest rates stabilize, the market is expected to see a more balanced and favourable growth in 2024. Here are some of the reasons why 2024 is a great year to buy or sell a home in B.C., focusing on some of the most popular and affordable areas in the province.

Surrey, Langley and White Rock

Surrey, Langley and White Rock are among the fastest-growing and most diverse communities in B.C., offering a range of housing options, amenities, and lifestyles for home buyers. These areas have seen strong demand and price appreciation in the past few years, driven by factors such as affordability, accessibility, and quality of life. According to the latest forecast by Central 1 Economics, home sales volumes in these areas are expected to drop by 5% in 2023, which is a shallower drop than the 35% decline in 2022, before seeing gains of 12% in 2024 and 14% in 2025. The average home price in these areas is expected to drop by 2.7% to $970,000 in 2023, followed by increases of 0.5% in 2024 and 3.6% in 2025, returning to above the $1 million mark. These areas are expected to benefit from robust population growth, especially from international immigration, as well as improved transportation infrastructure, such as the SkyTrain extension to Langley and the Pattullo Bridge replacement. These areas are also expected to see more supply of multi-family units, such as condominiums and townhouses, which will provide more affordable and diverse housing options for buyers.

What does this mean for you? If you are looking to buy a home in these areas, 2024 could be a great opportunity to take advantage of the lower prices and higher inventory, as well as the low interest rates that are expected to prevail in the first half of the year. If you are looking to sell a home in these areas, 2024 could be a great time to capitalize on the strong demand and price growth, as well as the favourable market conditions that are expected to improve in the second half of the year.

Vancouver

Vancouver is one of the most livable and desirable cities in the world, offering a stunning natural environment, a vibrant culture, and a dynamic economy. Vancouver is also one of the most expensive and competitive real estate markets in Canada, with limited supply and high demand. According to the latest forecast by the Canadian Real Estate Association (CREA), Vancouver home sales are forecast to rise by 13.9% to 561,090 units in 2024, as the market returns to its long-term trend and monetary policy moves towards a more neutral stance. This forecast would still leave activity well below the 2021 record, but it would lift it back in line with the long-term trend and place it back above the 10-year average. The average home price in Vancouver is forecast to recover by 4.7% from 2023 to 2024 to around $702,200, putting it on par with 2022. Vancouver is expected to see more buyers return to the market after waiting on the sidelines for added certainty around mortgage payments and property value. Vancouver is also expected to see more supply of new homes, especially in the downtown core, where several high-rise projects are underway or planned, such as the Burrard Place, the Butterfly, and the Vancouver House. These projects will offer more luxury and innovative living spaces for buyers who are looking for urban convenience and lifestyle.

What does this mean for you? If you are looking to buy a home in Vancouver, 2024 could be a great chance to find your dream home in one of the most sought-after cities in the world, as well as to enjoy the low interest rates that are expected to last until the second quarter of the year. If you are looking to sell a home in Vancouver, 2024 could be a great opportunity to maximize your return on investment, as well as to benefit from the increased sales activity and price recovery that are expected to occur throughout the year.

Interest Rate Forecast

One of the most important factors that affect the real estate market is the interest rate, which influences the cost and availability of borrowing money for mortgages. The interest rate is determined by the Bank of Canada, which sets the overnight lending rate, which in turn affects the prime rate that banks charge their customers. The Bank of Canada has been raising its overnight rate since March 2022, in response to the rising inflation and economic growth. The overnight rate reached 5% in July 2023, where it currently stands. However, the Bank of Canada has signaled that it may be nearing the end of its tightening cycle, as inflation is expected to moderate and economic growth is expected to slow down. According to the latest forecast by CBRE Canada, the Bank of Canada is expected to start cutting its overnight rate in the second quarter of 2024, by as much as 1.25% by the end of the year, bringing it down to 3.75%. This means that the prime rate, which is currently at 8.45%, could drop to 7.2% by the end of 2024.

What does this mean for you? If you are looking to buy a home in 2024, you could benefit from the lower interest rates that are expected to prevail in the second half of the year, which could make your mortgage payments more affordable and increase your purchasing power. If you are looking to sell a home in 2024, you could benefit from the higher interest rates that are expected to prevail in the first half of the year, which could create a sense of urgency among buyers and increase the demand for your property.

Conclusion

The 2024 real estate market in B.C. is expected to be more stable and balanced than the previous years, with moderate price growth and increased sales activity. Buyers who are looking for affordability, diversity, and growth potential should consider Surrey, Langley and White Rock as their top choices, while buyers who are looking for livability, culture, and innovation should consider Vancouver as their top choice. Sellers who are looking to cash in on their equity and move to a different location or property type should also find ample opportunities in both markets. No matter what your preferences and budget are, there is a home for you in B.C. in 2024.

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Damian Dowell

D&T Real Estate GroupWith over 22 years of combined real estate service under our belt, Damian and Tricia can assure you that you are in good hands with us. Representing current and future homeown....

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