October was on fire, with official numbers showing a staggering 43% year-to-year increase in the number of sales.
Looking at the graph below, I can’t help but feel that we’re at the beginning of a long stretch of upward-trending market.
Canada has officially started cutting interest rates in 2024, sparking plenty of discussions in the market.
We saw the first three cuts of a quarter-point each, followed by a substantial 50-basis-point drop on October 23rd, bringing the Bank of Canada’s rate down to 3.75%.
The next rate announcement is scheduled for December 11th, 2024, with economists anticipating the potential for another 50-basis-point cut. This would lower the rate to 3.25%. The prediction is driven by signs of slowing economic growth and inflation dropping below the central bank’s 2% target.
While rate cuts are intended to stimulate the economy as a whole, they have a significant impact on real estate.
With limited new construction and a growth in the population entering the province of Québec, I believe we’re poised to see some fascinating developments in these next twelve months.
So far this year, the increase in sales and the rise in the number of homes available on the market, have been neck-and-neck. Both have hovered around 14-15%. This balance has kept supply-and-demand stable, resulting in relatively steady prices.
However, this latest development suggests that if sales continue to climb at this pace, demand will quickly outstrip supply, leading to a significant increase in real estate prices.
It’ll be exciting to see how this all unfolds. And, as always, my team and I will keep a close eye on the market and keep you informed of any and all emerging trends.