Canadian Real Estate Market: A 2024 Outlook

As we navigate through 2024, the Canadian real estate market presents a landscape of both challenges and opportunities. After a tumultuous period, industry experts forecast a year that could mark the beginning of a significant shift. Here's what you need to know about the Canadian real estate market in 2024.

Interest Rates and Economic Growth

Economists predict a potential decrease in interest rates by late Q2, with a drop of 100 basis points to 4.00% by year-end¹. This anticipated adjustment is expected to spur mid-sized investment deals and drive transaction activity, particularly as Canada leads G7 countries in GDP, employment, and population growth¹.

Residential Market Dynamics

The residential sector may see a tale of two halves in 2024. The first part of the year is likely to continue the trend of slow activity and softer prices due to high policy rates. However, a pivot toward rate cuts mid-year could accelerate market activity, satisfying pent-up demand and leading to a gradual recovery².

Commercial Real Estate Prospects

Commercial real estate is poised for recovery, with interest rate cuts later in the year potentially boosting transaction activity. Investment volumes are expected to improve modestly, and cap rates will stabilize, offering a balanced market for investors⁵.

Regional Variations

The national outlook is nuanced, with provinces like British Columbia and Ontario recovering ground more slowly due to high ownership costs. In contrast, Alberta and Saskatchewan are already showing signs of an uptrend, setting them up for above-average resales growth².

The Multifamily Sector

The multifamily sector continues to grapple with significant undersupply, exacerbated by unprecedented population growth. This demand is driving the need for more housing, highlighting the importance of this sector in the coming year¹.

Final Thoughts

The Canadian real estate market in 2024 is shaping up to be a year of cautious optimism. With the potential for interest rate decreases and continued economic growth, investors and homeowners alike should stay informed and ready to adapt to the evolving market conditions.

For a more detailed analysis, download CBRE’s 2024 Canadian Market Outlook¹ and stay ahead of the trends shaping real estate across the country.

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This brief blog post provides an SEO-optimized overview of the Canadian real estate market predictions for 2024, drawing on the latest reports and forecasts. It's designed to capture the essence of the market's direction and offer valuable insights for readers interested in Canadian real estate investments.