What are Canadian homebuyers likely to focus on in 2024?

Report suggests average residential prices will increase by 0.5% nationally next year

What are Canadian homebuyers likely to focus on in 2024?

Would-be homebuyers in 2024 will likely prioritize the purchase of primary residences with rental potential to compensate for mortgage costs, according to RE/MAX Canada.

In its housing outlook report focusing on 2024, RE/MAX predicted that Canada’s average residential price will increase by 0.5% next year, with the majority of markets to encounter growth rates between 2% and 7.5%.

Thus, cultivating potentially massive returns in investment on rent-ready housing will be an important revenue stream for Canadians wrestling with elevated interest rates and continued market volatility, RE/MAX said.

“This strategy, aimed at maximizing investment returns and countering rising living costs and mortgage payments, is anticipated to be a key influence in the 2024 housing market,” RE/MAX noted.

RE/MAX Canada president Christopher Alexander said that historically speaking, real estate has been a bastion of financial stability, and 2024 will be no different on that front.

“The slower market we’ve been experiencing across the country this fall could be an early indicator of an active 2024, as reflected in the modest price increase and sales outlook for next year, and the balancing of conditions in several regions across the country,” Alexander said.

Rental rates continue their upward trend

Data from Rentals.ca and Urbanation suggested that the rental market remains a lucrative sector, with the average monthly rate for a rental unit in Canada reaching $2,178 in October.

This 9.9% annual increase represented the sixth straight month where asking rents in Canada reached new highs. Month over month, average asking rents grew by 1.4% in October.

Rentals.ca and Urbanation attributed the October surge to sustained rent inflation, which has become increasingly concentrated in Alberta, Quebec, and Nova Scotia.

“These provinces have experienced a combination of strong population growth and large infusions of new rental supply priced at above-average market rents,” said Rentals.ca and Urbanation.