National aggregate home price forecast to increase 5.5% year over year in Q4 of 2024

Following several years of unprecedented ups and downs, Canada’s housing market could return to more normal levels of activity and price trends next year. The Bank of Canada is expected to lower its overnight lending rate in the second half of 2024, which will lead to increased demand from sidelined buyers as they adjust to today’s lending realities. New household formation and newcomers to Canada will put additional upward pressure on prices. 

“Looking ahead, we see 2024 as an important tipping point for the national economy as most Canadians acknowledge that the ultra-low interest rate era is dead and gone,” said Phil Soper, President and CEO, Royal LePage. “We believe that the ‘great adjustment’ to tolerable, mid-single-digit borrowing costs will have a firm grip on our collective consciousness after only modest rate cuts by the Bank of Canada.”  

According to the Royal LePage 2024 Market Survey Forecast, the aggregate1 price of a home in Canada is set to increase 5.5% year over year to $843,684 in the fourth quarter of 2024, with the median price of a single-family detached property and condominium projected to increase 6.0% and 5.0% to $879,164 and $616,140, respectively.2 

Royal LePage’s forecast is based on the prediction that the Bank of Canada has concluded its interest rate hike campaign and that the key lending rate will hold steady at five percent through the first half of 2024. The central bank is expected to start making modest cuts in late summer or fall of next year. Meanwhile, several major financial institutions have already begun offering discounts on fixed-rate mortgages.

“Canada’s real estate market has been on a roller coaster ride for the last four years. A global pandemic briefly brought market activity to a grinding halt in early 2020, followed by a rapid, widespread spike in demand and price appreciation as Canadians sought safety and greater living space in their homes among a world of uncertainty. By the spring of 2022, home prices had reached unprecedented highs, but when interest rates started rising quickly and steeply to combat inflation, the extended market correction began,” said Soper. “Markets take time to adjust. We see a move toward typical home sale transaction levels in 2024, and as the year progresses, appreciating house prices.”

Nationally, home prices are forecast to see modest quarterly gains in the first two quarters of 2024, with more considerable increases expected in the second half of the year, following the anticipated start of interest rate cuts by the Bank of Canada. 

The quest for the perfect home within a limited budget can seem daunting. But here's the truth: the perfect home doesn't really exist. Instead, it's about finding a home that aligns with your needs and has the potential to evolve with you. In this blog, I'll share my insights on how to find the right home without compromising on your budget.

1. Letting Go of Perfection: To embark on your home search, it's crucial to let go of the idea of a flawless property. Instead, focus on finding a home that meets most of your criteria and has room for growth. Flexibility is key when you're working within a budget.

2. Prioritize Your Must-Haves: Creating a list of must-haves is a powerful way to stay focused and avoid distractions. Consider essential factors like the number of bedrooms and bathrooms, square footage, neighborhood safety, school district quality, commute convenience, and access to public transportation. Don't forget to include features like outdoor space and parking availability.

3. Distinguishing Wants from Needs: While must-haves are non-negotiable, wants are features that can enhance your living experience but are not crucial. Examples include an updated kitchen, open floor plan, additional living spaces, walk-in closets, energy-efficient appliances, smart home technology, recreational amenities, home office space, and architectural features. Prioritize your wants and be willing to compromise on some if needed.

4. Embrace Thinking Outside the Box: One of the most valuable pieces of advice is to be open-minded and think creatively. Consider homes that may not initially meet all your criteria but have potential. With a little vision and some elbow grease, you can transform a property into your dream home over time. Renovations and improvements can add value and allow you to personalize the space according to your taste.

Conclusion:

Finding the right home without compromising on your budget requires a strategic approach. It's essential to let go of perfection and focus on what truly matters. Prioritizing your must-haves and distinguishing wants from needs helps you stay on track. Most importantly, don't be afraid to think outside the box and consider homes with potential. By being open-minded and creative, you can turn an imperfect house into a home that perfectly fits your needs and budget.

Now it's your turn! Have you found yourself asking these questions? Do any of these tips resonate with you? Share your thoughts and experiences in the comments below!

1. Halifax is reputed to have one of the highest number of bars per capita of any Canadian city! Which means we are FUN!

2. Halifax has a rich and varied history, from its role as a major port city in the days of British colonial rule, to its importance as a military and naval center in both world wars.

3. With its stunning harbor and coastal views, Halifax offers a picturesque and scenic living environment.

4. Friendly people: Haligonians are known for their friendly and welcoming nature, making it a great place to live and build relationships.

5. Halifax has a strong and growing economy with a diverse mix of industries, including finance, technology, and tourism.

6. With SIX universities located in the city, Halifax offers a great education system for students of all ages.

7. From taxis to buses, there is no shortage of ways to get around in Halifax. However, the Halifax  Ferry is certainly a unique way. This harbour ferry service has been connecting the city of Halifax to neighbouring Dartmouth for 269 years.

8. The Halifax Waterfront is a bustling hotspot in the city. With one of the world's longest urban boardwalks spanning the length of the waterfront for 4 kilometres (2.5 miles), from Pier 21 at the Halifax Seaport to Casino Nova Scotia, it is easy to spend a day exploring here.

9. Affordable housing: Compared to other cities in Canada, housing in Halifax is relatively affordable, making it an attractive option for those looking for a good standard of living.

10. Natural beauty: With its proximity to nature reserves, parks, and hiking trails, Halifax offers easy access to some of Canada's most beautiful natural landscapes.

National aggregate home price forecast to increase 5.5% year over year in Q4 of 2024

Following several years of unprecedented ups and downs, Canada’s housing market could return to more normal levels of activity and price trends next year. The Bank of Canada is expected to lower its overnight lending rate in the second half of 2024, which will lead to increased demand from sidelined buyers as they adjust to today’s lending realities. New household formation and newcomers to Canada will put additional upward pressure on prices. 

“Looking ahead, we see 2024 as an important tipping point for the national economy as most Canadians acknowledge that the ultra-low interest rate era is dead and gone,” said Phil Soper, President and CEO, Royal LePage. “We believe that the ‘great adjustment’ to tolerable, mid-single-digit borrowing costs will have a firm grip on our collective consciousness after only modest rate cuts by the Bank of Canada.”  

According to the Royal LePage 2024 Market Survey Forecast, the aggregate1 price of a home in Canada is set to increase 5.5% year over year to $843,684 in the fourth quarter of 2024, with the median price of a single-family detached property and condominium projected to increase 6.0% and 5.0% to $879,164 and $616,140, respectively.2 

Royal LePage’s forecast is based on the prediction that the Bank of Canada has concluded its interest rate hike campaign and that the key lending rate will hold steady at five percent through the first half of 2024. The central bank is expected to start making modest cuts in late summer or fall of next year. Meanwhile, several major financial institutions have already begun offering discounts on fixed-rate mortgages.

“Canada’s real estate market has been on a roller coaster ride for the last four years. A global pandemic briefly brought market activity to a grinding halt in early 2020, followed by a rapid, widespread spike in demand and price appreciation as Canadians sought safety and greater living space in their homes among a world of uncertainty. By the spring of 2022, home prices had reached unprecedented highs, but when interest rates started rising quickly and steeply to combat inflation, the extended market correction began,” said Soper. “Markets take time to adjust. We see a move toward typical home sale transaction levels in 2024, and as the year progresses, appreciating house prices.”

Nationally, home prices are forecast to see modest quarterly gains in the first two quarters of 2024, with more considerable increases expected in the second half of the year, following the anticipated start of interest rate cuts by the Bank of Canada. 

The quest for the perfect home within a limited budget can seem daunting. But here's the truth: the perfect home doesn't really exist. Instead, it's about finding a home that aligns with your needs and has the potential to evolve with you. In this blog, I'll share my insights on how to find the right home without compromising on your budget.

1. Letting Go of Perfection: To embark on your home search, it's crucial to let go of the idea of a flawless property. Instead, focus on finding a home that meets most of your criteria and has room for growth. Flexibility is key when you're working within a budget.

2. Prioritize Your Must-Haves: Creating a list of must-haves is a powerful way to stay focused and avoid distractions. Consider essential factors like the number of bedrooms and bathrooms, square footage, neighborhood safety, school district quality, commute convenience, and access to public transportation. Don't forget to include features like outdoor space and parking availability.

3. Distinguishing Wants from Needs: While must-haves are non-negotiable, wants are features that can enhance your living experience but are not crucial. Examples include an updated kitchen, open floor plan, additional living spaces, walk-in closets, energy-efficient appliances, smart home technology, recreational amenities, home office space, and architectural features. Prioritize your wants and be willing to compromise on some if needed.

4. Embrace Thinking Outside the Box: One of the most valuable pieces of advice is to be open-minded and think creatively. Consider homes that may not initially meet all your criteria but have potential. With a little vision and some elbow grease, you can transform a property into your dream home over time. Renovations and improvements can add value and allow you to personalize the space according to your taste.

Conclusion:

Finding the right home without compromising on your budget requires a strategic approach. It's essential to let go of perfection and focus on what truly matters. Prioritizing your must-haves and distinguishing wants from needs helps you stay on track. Most importantly, don't be afraid to think outside the box and consider homes with potential. By being open-minded and creative, you can turn an imperfect house into a home that perfectly fits your needs and budget.

Now it's your turn! Have you found yourself asking these questions? Do any of these tips resonate with you? Share your thoughts and experiences in the comments below!

1. Halifax is reputed to have one of the highest number of bars per capita of any Canadian city! Which means we are FUN!

2. Halifax has a rich and varied history, from its role as a major port city in the days of British colonial rule, to its importance as a military and naval center in both world wars.

3. With its stunning harbor and coastal views, Halifax offers a picturesque and scenic living environment.

4. Friendly people: Haligonians are known for their friendly and welcoming nature, making it a great place to live and build relationships.

5. Halifax has a strong and growing economy with a diverse mix of industries, including finance, technology, and tourism.

6. With SIX universities located in the city, Halifax offers a great education system for students of all ages.

7. From taxis to buses, there is no shortage of ways to get around in Halifax. However, the Halifax  Ferry is certainly a unique way. This harbour ferry service has been connecting the city of Halifax to neighbouring Dartmouth for 269 years.

8. The Halifax Waterfront is a bustling hotspot in the city. With one of the world's longest urban boardwalks spanning the length of the waterfront for 4 kilometres (2.5 miles), from Pier 21 at the Halifax Seaport to Casino Nova Scotia, it is easy to spend a day exploring here.

9. Affordable housing: Compared to other cities in Canada, housing in Halifax is relatively affordable, making it an attractive option for those looking for a good standard of living.

10. Natural beauty: With its proximity to nature reserves, parks, and hiking trails, Halifax offers easy access to some of Canada's most beautiful natural landscapes.