This week's real estate news in Vancouver and Canada highlights a projected rise in home prices by 2024, the influence of interest rates, and evolving market dynamics.
A central theme in the recent news is the forecasted rise in home prices in Metro Vancouver by 2024. Despite a current slowdown in sales activity and an increase in inventory levels, prices are expected to climb modestly. This trend is underpinned by a decrease in demand, partly due to buyers awaiting lower interest rates. It's believed that the Bank of Canada's interest rate hike campaign has reached its zenith, and stability in key lending rates is expected through the first half of 2024. The average price in Metro Vancouver is projected to experience a slight rise, reflecting these broader economic trends.
Canada's housing market is poised for a pivotal shift in 2024, as dubbed by Phil Soper, President and CEO of Royal LePage, "The Great Adjustment." This change is expected to follow the public's adaptation to the absence of low interest rates, leading to a significant rise in home prices in the latter half of the year. Royal LePage's Market Survey Forecast predicts a 5.5% increase in the aggregate price of Canadian homes, reaching $843,684 by Q4 2024, with single-family homes and condos seeing similar upward trends.
Canada's rental market in November showed nuanced trends, with a notable slowing in rent increases in key cities. The national average rent slightly declined by 0.2% from October, averaging $2,174. In Vancouver, rent for a one-bedroom unit averaged $2,866, showing a marginal drop, while in the Greater Toronto Area, Toronto's rents for one and two-bedroom units were $2,594 and $3,450 respectively. Despite this, the overall annual growth in rents across Canada stands at 8%, with one-bedroom apartments experiencing the strongest growth at 13.6%.
Calgary has surpassed other major Canadian cities as the most expensive place to live, according to Statistics Canada's latest Market Basket Measure (MBM). The cost of basic goods required for a moderate standard of living in Calgary reached $55,771 in 2022, slightly higher than Vancouver at $55,727, Toronto at $55,262, and Edmonton at $55,225. These figures reflect the rising costs of living in big cities, with Calgary experiencing a notable increase.
