The Canadian Real Estate Association (CREA) has lowered its housing market forecast for 2024, even though there was a rise in home sales in June. CREA now predicts that home sales for 2024 will be weaker than previously thought. The decision comes amid ongoing economic uncertainties and fluctuating interest rates.
In June, home sales increased by 1.5% compared to May, marking a positive change after several months of decline. Despite this growth, CREA remains cautious. They believe the overall market conditions will stay challenging in the coming year. High mortgage rates and affordability issues are still significant concerns for potential homebuyers.
CREA also adjusted its forecast for home prices. They expect prices to rise slower than earlier projections. This revision considers the economic factors influencing buyers' decisions, such as higher borrowing costs and stricter lending rules. These elements have made it harder for many Canadians to afford homes, leading to more conservative market predictions.
Overall, while June's sales figures brought some optimism, CREA's revised forecast highlights the persistent challenges in the housing market. Buyers and sellers alike should prepare for a slower market in 2024, with ongoing economic uncertainties playing a critical role in shaping the future of real estate in Canada.
Comments