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Market Monday - 2024 Real Estate Market Review

Jan 13

4 min read

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I’m excited to share a deep dive into the 2024 real estate market. This year was one of significant shifts, shaped by interest rate cuts, evolving buyer behavior, and regional nuances. Whether you're a homeowner, buyer, or investor, this review will provide valuable insights into national, provincial, and local trends.


Real Estate Market Update

Canadian Real Estate Market Overview

The Canadian real estate market in 2024 was marked by cautious optimism. After enduring the Bank of Canada's aggressive rate hikes from 2022 to mid-2024, the market began to stabilize following several interest rate cuts starting in June. However, the response was measured rather than explosive.


Key National Trends

  • Interest Rate Cuts: The Bank of Canada reduced its benchmark rate five times in 2024, bringing it down to 3.75% by December. While this eased borrowing costs, many buyers remained hesitant, waiting for further reductions

  • Sales Activity: National home sales rose by 6.1% year-over-year to 472,395 units, with a notable 27% increase in November alone compared to the previous year

  • Pricing: The national average home price increased modestly by 2.5% to $694,393 for the year. However, affordability challenges persisted due to high inflation and elevated mortgage stress test requirements earlier in the year

  • Condo Market: Condos faced headwinds in major cities like Toronto and Vancouver due to oversupply and affordability concerns. Average condo prices dipped slightly year-over-year


Major Milestones

  • The largest month-over-month price increase occurred in November (+0.6%), signaling renewed buyer confidence after months of stagnation

  • New mortgage policies introduced in November eliminated the stress test for certain borrowers, improving affordability for first-time buyers


Ontario Real Estate Market Overview

Ontario’s real estate market mirrored national trends but exhibited unique regional dynamics.


Key Provincial Trends

  • Sales & Prices: Ontario saw a 10.8% increase in sales activity for 2024 but only a marginal 0.2% rise in home prices to $868,067 on average

  • Balanced Market: With a sales-to-new-listings ratio (SNLR) of 55%, Ontario operated in a balanced market for much of the year

  • Inventory Growth: Active listings reached decade-high levels in November (+18.6% year-over-year), offering more options for buyers but keeping price growth subdued


Condo vs. Detached Homes

Comparison of Condos vs. Detached Homes

  • Price Change (Year-over-Year): Condos saw a decline of -5.3%, while detached homes experienced a smaller decrease of -0.5%.

  • Demand: Demand for condos was slower due to oversupply, whereas detached homes showed signs of steady recovery.

  • Market Dynamics: The condo market operated as a buyer’s market, while the detached home market remained balanced.


Local Real Estate Market Insights: Brantford, Brant, Paris, Cambridge & Surrounding Areas

The local markets we serve at Hynesight Inspections demonstrated resilience despite broader challenges.


Home Sales & Pricing

  • Brantford: Recorded 1,817 home sales (-1.8% YoY). The average home price was $695,022 (-2.8%), while December sales surged by 25%, signaling strong year-end momentum

  • Paris: Ended Q2 as a buyer’s market with only 29% of homes sold—a stark contrast to Brantford's balanced conditions

  • Cambridge: Average home prices hovered at $737,400 (+1.6% YoY), reflecting stability despite broader provincial declines


Inspection Data

At Hynesight Inspections, we conducted over 300 inspections across these areas in 2024. Our thorough reports empowered buyers and sellers alike with critical insights into property conditions.


Market Dynamics

Area-Specific Pros and Cons


  • Brantford

    • Pros: Brantford offers affordable housing options compared to nearby cities and has strong rental demand, making it attractive for investors and first-time buyers.

    • Cons: Growth in higher-priced housing segments has been slower, limiting opportunities for those seeking premium properties.

  • Paris

    • Pros: Paris is known for its lower housing prices and buyer-friendly market, offering a mix of historic homes and new builds in a picturesque setting.

    • Cons: Limited inventory can make it challenging for buyers to find suitable properties, especially in competitive price ranges.

  • Cambridge

    • Pros: Cambridge boasts stable pricing and proximity to the Greater Toronto Area (GTA), making it an appealing choice for commuters and families.

    • Cons: The condo market in Cambridge has shown slower activity, which may deter some investors or buyers looking for urban-style living options.


Real Estate Market Potential & Red Flags


Growth Opportunities

  1. Interest Rate Tailwinds: Further rate cuts expected in early 2025 could boost affordability and demand.

  2. Regional Affordability: Areas like Brantford and Paris remain attractive alternatives to pricier GTA markets.


Red Flags


  1. Condo Oversupply: Urban condo markets face prolonged challenges due to high inventory and weak investor interest.

  2. Economic Uncertainty: Potential slowdowns could dampen buyer confidence despite improved borrowing conditions.


Major Milestones Impacting 2024 Real Estate


  1. Rate Cuts: The Bank of Canada’s five rate reductions were pivotal but fell short of sparking immediate demand surges due to lingering affordability concerns

  2. Policy Changes: New mortgage rules introduced in November eliminated stress tests for certain borrowers, improving access for first-time buyers

  3. Inventory Surge: Ontario’s active listings reached decade-high levels by November (+18.6%), creating more balanced conditions but limiting price growth


Looking Ahead

As we transition into 2025:


  • Buyers should act early before spring competition heats up.

  • Sellers must focus on competitive pricing and property presentation.

  • Investors should target affordable markets with strong rental demand.


At Hynesight Inspections, we’re proud to support your real estate journey with expert inspections tailored to your needs. Whether you’re buying or selling, our insights ensure you make informed decisions with confidence.


Here's to a prosperous 2025! Let us help you see clearly before you buy or sell—because at Hynesight Inspections, we believe every detail matters!

Jan 13

4 min read

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