Market Minute: October 2024 Update

Real estate activity in our region remains below the expected pace, although we’ve observed a notable rise in inventory. This increase in supply has contributed to a steady trend of price adjustments across most areas. However, it’s important to note that these "improvements" don’t necessarily indicate prices are moving up or down; rather, they reflect the ongoing balancing act between sellers’ expectations and what buyers are willing to pay.

Many homeowners continue to list their properties at higher prices, often based on past market conditions. Our role is to provide an informed, data-driven pricing strategy, offering the most up-to-date insights to support our recommendations. Ultimately, the market is a dynamic environment, where prices are determined by what both buyers and sellers are willing to agree upon.

The Bank of Canada's October 23, 2024 rate announcement delivered a highly anticipated 50 basis point cut, reducing the overnight lending rate to 3.75%. While this is good news for those with variable-rate mortgages, for those looking at renewals or new mortgages, most lenders had already factored in this reduction. The Bank has also hinted at further rate cuts to support the sluggish Canadian economy, with many economists projecting the rate could fall to 2.75% by spring 2025.

So, what does this mean for our local market? We’re likely to see continued stability with a slight increase in activity. However, I expect some downward pressure on prices as buyers take advantage of the growing inventory and time on their side. It’s still a good time to sell, but sellers should remain patient and realistic about market conditions, as pricing strategically will be key to securing the right buyer.

If you are considering selling don’t hesitate to invite me and my team to come give a complimentary and comprehensive home valuation.