What to Expect in the New Year 2024
The real estate market has been on a roller coaster ride for the last few years, especially in the Fraser Valley and Greater Vancouver area. The COVID-19 pandemic has changed the way people buy and sell homes, as well as how they improve their living spaces. After a surge of activity in the first year of the pandemic, the market has faced uncertainty, high demand and high inflation. However, there are some signs of hope for the new year, according to industry experts and partners.
What are the signs of hope?
- Lower bond yields: As bond yields decline, the Bank of Canada may have to cut interest rates to stimulate the economy and keep inflation under control. Lower interest rates make borrowing cheaper and more attractive for home buyers and sellers.
- Stable inflation: The Bank of Canada has been targeting an inflation rate of around two per cent, and has achieved that goal for the last six months. This means the bank has not changed its key interest rate since September 2023, creating a sense of stability and predictability in the market.
- More pre-approvals: Mortgage professionals are seeing an increase in the number of people applying for pre-approval, which indicates that they have confidence in their jobs and finances, and are ready to enter the market. Pre-approval also gives them an advantage in a competitive market, as they can act quickly and confidently when they find their dream home.
- Expected rate cut: Economists are forecasting that the Bank of Canada will lower its interest rate sometime in 2024, possibly as early as spring or as late as fall. A rate cut would boost the economy, lower mortgage costs and increase affordability for home buyers and sellers.
These are some of the signs that we can look forward to in the new year, as the real estate market adapts to the changing conditions and opportunities. If you are thinking of buying or selling a home in 2024, contact me today and let me help you achieve your goals.