Why Fall 2024 is Your Perfect Opportunity to Buy a Home in Canada!

As we move into the cozy season of fall, the real estate market is heating up in more ways than one! Following years of uncertainty—thanks to the global pandemic, fluctuating interest rates, and inflation—fall 2024 is shaping up to be a game-changer for home buyers. Whether you’re a first-time buyer or looking to upgrade, this season could present some of the best opportunities we’ve seen in recent memory.

How Interest Rate Cuts Are Shaping the Market

The biggest news this fall? Interest rates are coming down! After peaking at 7.20% in July 2023, the Bank of Canada has already rolled out three rate cuts in 2024, with the prime rate now sitting at 6.45%. For buyers, this means smaller mortgage payments, better affordability, and, in many cases, the ability to qualify for higher loan amounts.

If you’ve been holding back because of high rates, this drop is good news—especially for those with variable-rate mortgages, who are already seeing their payments shrink. Even a small rate cut, like 0.25%, can make a significant difference over time, especially for long-term loans.

Home Prices Are Stabilizing—But Not Everywhere

It’s not just interest rates offering a brighter outlook for buyers. Home prices in major markets like Greater Vancouver and Greater Toronto have started to level off after years of rapid increases. For instance, the average home price in Vancouver dropped from $1.30M in 2023 to $1.25M in 2024, while Toronto saw a decline from $1.12M to $1.07M in the same period. This stabilization makes it easier to plan your budget without worrying about sudden price hikes.

On the other hand, regions like Fraser Valley and Hamilton-Burlington continue to show solid growth. In Fraser Valley, home prices have steadily risen from $842K in 2020 to $1.05M in 2024, making it an attractive option for buyers looking for long-term investment opportunities. Hamilton-Burlington also offers solid potential with prices climbing from $722K to $887K since 2020.

A Balanced Market Brings Buyers More Choice

Another bonus for fall 2024 buyers? More inventory! With a balance between new listings and sales in many regions, buyers have more homes to choose from, easing competition and giving you the chance to find your dream home without the pressure of bidding wars.

For example, the Greater Toronto area is currently a buyer’s market, with a sales-to-new-listings ratio (SNLR) of 39.7%. This means buyers have the upper hand, with more listings available than there are buyers snatching them up. Similar trends are being seen in Niagara, where a high inventory has been keeping prices in check.

What to Expect in 2025

While fall 2024 is shaping up to be a great time to buy, experts predict that the momentum will carry into 2025. As borrowing costs continue to decline, buyers will initially benefit from both lower mortgage payments and stable home prices. Even as demand starts to pick up, it will take time for inventory levels to adjust, meaning there could be a window of opportunity where buyers can still take advantage of these favorable conditions.