As we approach the end of 2023, all eyes are on Simcoe County real estate. Buyers, and sellers are eager to know whether home prices will rise or fall in spring 2024. In this blog post, we will cover the factors that could influence the trajectory of our local housing market next year.
1. Market History and Trends
To predict 2024’s real estate trends, it’s essential to look at the market’s history. In recent years, Simcoe County real estate has seen rising property values due to increased demand, low interest rates, and lifestyle changes accelerated by the COVID-19 pandemic. While we saw prices rise considerably over the last few years, we do expect a shift in the market as we see increased supply, rising interest rates, and companies implementing return to office policies.
2. Interest Rates and Mortgage Rates
The Bank of Canada’s interest rate decisions affect mortgage affordability, which in turn results in home buyers being restricted in how much they can qualify for. As interest rates continue to rise in 2023, we expect to see this have an impact on home prices in 2024 as buyers continue to be restricted in their ability to afford homes.
3. Housing Supply and Demand
The balance between housing supply and demand is a primary driver of home prices. In Simcoe County, where suburban and rural living is in demand. So, it’s important to watch construction trends and inventory levels. In 2020, it was the combination of low interest rates, high demand, and a tight supply of homes that led us to skyrocketing prices. As supply increases, and homes sit on the market longer, we will see buyers have the leverage to negotiate more when buying a home.
4. Government Policies and Regulations
Government policies and regulations can have a significant impact on home prices. Additionally, Changes in home buying rules or taxation can affect affordability and demand. So, Keep an eye out for any upcoming policy adjustments that could shape the market.
5. Economic Factors
Local and national economic conditions play a vital role in real estate prices. This means factors like job growth, employment rates, and the region’s overall financial health can influence the housing market. Simcoe County has been growing, attracting industries, which historically leads to increased demand for homes.
Predicting 2024’s home prices in Simcoe County is complex. While we consider historical trends, government policies, the local economy, interest rates, and supply and demand, there are no guarantees. Currently, we are expecting home prices to soften in 2024, as we continue to see the impact of rising interest rates, and housing supply.
For an update on affordability in 2024, check out our latest fall outlook video on YouTube here.
We are here to be your resource and will keep a close watch on the market and provide updates on the market as we see the result of these changes unfold. Contact us today, and book an appointment to get all of your questions answered here.