The Canadian housing market in 2024 presents a mix of challenges and opportunities for buyers and homeowners, influenced by economic growth, interest rate trends, and housing supply issues.
- Despite surpassing growth expectations, the Bank of Canada has kept the interest rate at 5%. However, experts predict potential rate cuts starting from July 2024, impacting mortgage decisions.
- With the possibility of rate cuts, the choice between fixed and variable mortgage rates becomes crucial. Homeowners renewing mortgages and first-time buyers need to evaluate these options in light of the changing economic landscape.
- A significant factor in the housing market is the supply shortage, as highlighted by Bank of Canada Governor Tiff Macklem. This shortage is a key driver of housing costs and a critical consideration for market participants.
- First-time buyers may find opportunities in potentially lower future rates, but should also consider the supply shortage. Homeowners should assess the benefits of fixed versus variable rates in anticipation of the forecasted rate adjustments.
In 2024, the Canadian housing market is shaped by economic factors and policy decisions. Staying informed and adaptable is essential for those looking to navigate this market effectively.
