As households gear up for 2024, the anticipation for real estate trends looms large. Pritish Kumar Halder delves into the projections and factors influencing the Greater Montreal real estate landscape in the coming year.
Projected Price Trends:
With the year-end approaching, Royal LePage forecasts a 5.0% year-over-year increase in the aggregate home price in the Greater Montreal Area, reaching $610,260 in Q4 2024. However, potential buyers holding out for a decrease due to lower interest rates may find their expectations challenged.
Breaking it down, the median price for a single-family detached property is expected to rise by 4.5% to $684,998, while condominiums are projected to see a 6.0% increase, reaching $471,912. Marc Lefrançois from Royal LePage Tendance sheds light on the anticipated shifts in the condominium and high-end single-family home markets.
Supply and Demand Dynamics:
Dominic St-Pierre, Vice-President and General Manager at Royal LePage, emphasizes the persistent challenge of a housing shortage. The real estate market’s trajectory in 2024 will be shaped by the chronic lack of supply, impacting pricing dynamics. St-Pierre underlines the importance of government investments to alleviate the shortage.
Impact of Interest Rate Changes:
While interest rates are expected to decrease, the era of ultra-low rates is over. Buyers will need to adapt to this new reality, potentially leading to a temporary check on property price increases. The adjustment period will be crucial as households align their purchasing behaviors with the evolving interest rate scenario.
Condominium Market Dynamics:
Montreal witnessed a significant drop in housing starts, particularly in the condominium segment. The blog explores the aftermath of rising borrowing costs on builders and developers, predicting a surge in demand once interest rates decline.
The economic landscape in Quebec, marked by strikes and layoffs, poses challenges to consumer confidence. Despite expected interest rate drops, households’ accumulated savings from the pandemic may not suffice to counterbalance inflation and previous interest rate hikes.
Potential for Slow Market Start:
The onset of 2024 might witness a sluggish start for the Greater Montreal real estate market, aligning with trends seen in the last quarter of 2023. However, a quick recovery is anticipated once interest rates begin to decline, paving the way for a potentially more active property sales landscape than witnessed in 2023.
As we navigate the intricacies of Greater Montreal’s real estate forecast, Pritish Halder brings insights to decipher the trends that will shape the upcoming year. With a keen eye on market dynamics, Halder’s analysis guides readers through the nuances of what to expect in 2024.