Fall 2024 Real Estate Market Predictions: What to Expect

As we head into fall 2024, the housing market is showing a mix of promising opportunities and potential challenges for both buyers and sellers. Here’s a look at some key trends to watch out for:

1. Condo Inventory on the Rise

Condo listings across Canada, especially in cities like Toronto, are seeing a sharp increase in inventory. In the Greater Toronto Area (GTA) alone, active condo listings surged by over 60% year-over-year​ (Zoocasa.com). This rise in available units is putting downward pressure on prices, making fall a more favorable time for buyers interested in entering the condo market. Buyers should be aware, however, that price drops may not always indicate a decrease in overall property value, but rather the variety of homes available on the market.

2. Fierce Competition for Family Homes

Despite a general increase in inventory, demand for family-sized homes in sought-after areas, particularly those close to schools, remains high. Many homeowners in these regions are hesitant to sell, leading to pent-up demand for homes with multiple bedrooms, yards, and proximity to local amenities (Zoocasa.com). Buyers targeting these properties may still face bidding wars, despite overall softer market conditions.

3. Multi-Residential Opportunities

Investors may find unique opportunities in multi-residential properties this fall. Due to rising costs, many investors are offloading duplexes, triplexes, and fourplexes at competitive prices, especially in the GTA​ (Zoocasa.com). For first-time buyers, purchasing such properties can offer a significant advantage, as rental income can help offset mortgage costs.

4. Interest Rate Cuts Could Drive Renewed Buyer Interest

The Bank of Canada has cut interest rates three times this year, most recently lowering them to 4.25%(Zoocasa.com). These rate cuts, along with decreasing fixed mortgage rates, are expected to reignite buyer activity, especially as borrowing costs become more manageable. This, combined with increased inventory, creates an opportune moment for buyers to act before rates potentially fall further by year’s end.

5. Pre-Construction Market Challenges

The pre-construction sector continues to face headwinds due to rising interest rates. Many developers are forced to offer discounts, leading to "firesales" in some markets​(Zoocasa.com). Buyers interested in pre-construction should proceed with caution and consult with experienced agents to ensure they secure favorable deals.

In conclusion, fall 2024 presents a dynamic market with a variety of opportunities, particularly for buyers. Increased inventory, lower interest rates, and softened prices create a window for those ready to make a move. However, navigating this market requires insight and strategy, so working with a knowledgeable real estate professional is key to making the most of these conditions.

For more information on these trends and how to take advantage of the fall market, reach out to Ali Bolourchi's team for expert guidance.