RE/MAX: Consumer sentiment cautiously optimistic moving into 2024

Despite an unpredictable year for Canada’s housing market, the RE/MAX housing market outlook for 2024 predicts positive, albiet cautious news for Canadian homebuyers.

According to the report, consumer sentiment towards Canadian real estate remains strong – with 73 per cent of survey respondents saying they believe homeownership is the best investment, and nearly half saying they believe Canada is the best place to own a home.

Looking forward to 2024, RE/MAX says that 59 per cent of Canadian housing markets can expect increased unit sales, and the median price of a home will rise 0.5 per cent on average.

“It’s been a challenging year for Canadian homebuyers and sellers, who have been feeling the effects of a severe housing shortage and the high cost of living,” Christopher Alexander, president of RE/MAX Canada, said. “But much like Canada’s housing market, Canadians have stayed resilient. Historically, real estate has given owners excellent returns and strong financial security – and that hasn’t changed.”

However, after a year marked by affordability challenges, dwindling inventory and interest rate hikes, the consumer confidence that’s expected to boost market activity next year doesn’t come without a healthy dose of caution.

Per RE/MAX data, more than half (54%) of Canadians are concerned that interest rate hikes will hurt their chances of buying a home.

While affordability and availability remain challenging for buyers, location presents another challenge. Forty-one per cent of survey respondents believe that climate change will impact their decision on where to purchase a home in 2024, and 21 per cent are considering inter-provincial/city moves in search of homes they can afford.

While over half of Canada’s markets are expected to see increased activity next year, regional market conditions will vary. Here’s what RE/MAX predicts for some of Canada’s largest local markets:

Balanced Markets