Room for hope as market shows signs of recovery heading into 2024

• Real estate professionals see signs of recovery with an 8% increase in housing starts and upcoming immigration reforms
• Re-Max Quebec agent Van Cropsal notes sellers are adjusting to market conditions by setting mid-range property prices
• Changes in mortgage interest rates lead to increased buyer activity, but inventory remains low
• First-time buyers face challenges due to high prices and lifestyle costs, with many relying on parental assistance for downpayments

Better times: Real estate pros are slowly emerging from the lows of 2023 and early-2024, and looking for something (anything!) to grasp onto heading into the new year. With a surprising October housing starts report showing an 8 percent bump and immigration reforms on the horizon, the market might finally be getting some much-needed relief.

"Last year was a big low for us, and this year sellers are starting to understand the new market", says Re-Max Quebec agent Van Cropsal. He sees sellers adapting to market conditions by setting property prices at mid-range levels, reflecting a strategic shift from previous highs.

Rate cuts and stability: Cropsal sees a clear impact of the mortgage interest rate changes on buyer behavior, noting an increase in offer activity. "We have many more buyers and less inventory on the market. That's why we see - more often than not, people making offers."

Lingering problems for first-time buyers: Unfortunately, the good times might not extend to first-time buyers that lack exiting equity in the market. "For first-time buyers, it's going to be tougher because prices and lifestyle costs are high right now," warns Cropsal. "The downpayment is so high for them, and they have less capacity to put it down. Five percent is a minimum for the downpayment, and I often see parents helping with a donation when they can."

Also on our radar: New homeowners might also end up paying more in the long run for the right to buy now. "The new 30-year amortization will help first-time home buyers, but increase lifetime costs." Read it here