So we’ve stepped into 2024, and we’ve been met with some good news. Boy did we need it after last year! The real estate market is showing signs of trending growth and heightened confidence in both buyers and sellers! This has triggered some realtors to over-embellish and inflate this market. While we love the optimism, we’re just not quite there (yet).
With all that being said, this market is absolutely trending in the right direction and we’re excited to see where we’re heading! Let's delve into the latest trends shaping the real estate scene.
New Listings Surge...
The market has witnessed a substantial surge in new listings, up by an impressive 25% to 38% compared to 2023. This influx, coupled with a 21% to 28% increase in inventory and a 25% boost in sales, signals a robust and active real estate environment.
It is so important to work with a realtor that understands these trends. Many have been pricing way too high, which is not effective given the increase in inventory. Others have tried pricing way too low in order to attract bids, which has also been ineffective, ultimately resulting in a fair sale price they could have listed at in the first place. As of right now, the market is relatively balanced on both sides, which is a good thing!
Days On Market Decline...
Homes are spending less time on the market, with the average days on market dropping from 42 to a swift 26 days. This decrease suggests a faster pace of transactions, reflecting increasing buyer demand and efficient sales processes.
Again, while we are trending upward, we are not seeing bidding wars all over the place. Have we seen some flukes? Sure, but it is not wise to go into a sale expecting 50+ offers. At least not yet.
Home Appreciation over the Last 3 Years...
More good news for homeowners! Property values have seen healthy appreciation over the last three years, with detached homes, townhouses, and condos experiencing growth rates of approximately 6.5%, 7.5%, and 6.25%, respectively.
Recent Price Trends (Last 12 Months)...
When we look at the last 12 months, we observe diverse price trends across different housing types and neighbourhoods. While detached homes in some pockets are up by 3%, others have seen a slight decline of 4%. Similarly, townhouses have experienced an upward trend of 3%, while condos have seen a modest decrease of around 4.5%.
Future Outlook...
Looking ahead, we predict more and more good news! The real estate market in 2024 is poised for further price appreciation, supported by stable interest rates and positive consumer sentiment. Additionally, a continued increase in inventory may offer relief from the intense bidding wars we saw in 2022, providing buyers with more options and balanced market conditions. This is exactly what we want to see!t!