Industry All-Star - Barbara Lawlor CEO, Baker Real Estate Inc.

Uncertainty over housing supply, interest rates, inflation, politics and the economy in general... There’s been no shortage of reasons for pause for some would-be homebuyers: But the pendulum looks to be swinging back the other way.

To help you understand all the factors to make a better, more informed homebuying decision, our 2024 Builders' Annual sat down with some of the industry’s top marketing and sales experts for expert advice.

People may or may not realize it right now, but we are in a rare buyers’ market – both for end users and investors. Those who are unaware of this situation might be choosing to wait to purchase a house or condominium. The recent interest rate cuts were meant to fuel the market, and developers are offering low deposits on inventory as well as assignment sales. This is an unusual combination of scenarios that are creating infectious synergy. As the Bank of Canada lowers the rate again, which is predicted, this opportunity will pass, and prices will start to rise.

Buyers' market

In other words, this buyers’ market may not last.

Indeed, it has been an interesting year for real estate, and a lot of the news has been good. In April, the Canadian government announced in the federal budget that first-time homebuyers of new construction dwellings can obtain 30-year amortization periods (up from 25 years) for insured mortgages, making it easier to qualify. This change officially took effect on Aug. 1. In addition, building on the Tax-Free Home Savings Account, as of April 16, first-time buyers can withdraw up to $60,000 (up from $35,000) from their RRSPs without tax penalties to buy or build a home. The amortization extension, which enables more affordable monthly mortgage payment options, is part of the federal government’s plan to unlock nearly four million more homes. And of course, we have seen long-anticipated interest rate cuts from the Bank of Canada.

As we head into 2025, we seem to be in a more predictable financial environment with annual inflation cooling, declining mortgage rates and strong population growth. The market is stabilizing, and consumer confidence is growing. It’s amazing what interest rate cuts – and more coming in the near future – can do for trusting the market.

Consumer confidence

And consumer confidence is a major factor in a healthy economy. Homeownership remains a Canadian dream for most people, which is a good thing, as Canada relies heavily on our real estate sector for economic growth. Real estate is a driving force, as it constitutes a great percentage of wealth in households and across market sectors. In 2023, the real estate sales and brokerage industry in Canada alone was worth $26.1 billion.

For numerous reasons, purchasing a home or condo sooner rather than later is always good advice. Waiting until 2025 to buy is fine, but some fence-sitters may want to consider purchasing a home or condo suite this fall and winter while the getting’s good.

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