Fall 2024 real estate market: Analysis and forecasts

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August 29, 2024

Fall 2024 real estate market: Analysis and forecasts

Key facts:

A delicate balance between anticipation and action: Buyers are hesitating between acting now or waiting for rates to fall in 2025, creating a complex and uncertain market.
Crucial pricing strategy for sellers: Setting a realistic price with a 2-3% negotiation margin is essential to attracting quick offers.
Opportunities: Less competition in early autumn, offering buyers a favorable window of opportunity.
Risk of price rises: Waiting for rates to fall could lead to increased competition and higher prices for the most sought-after properties.
Stable forecasts for the end of 2024: The market should remain stable with a gradual absorption of post-COVID price increases, despite economic uncertainties.

The real estate market in autumn 2024 promises to be one of the most interesting and unpredictable periods of the year.

With continued sales growth and a slight rise in prices since the start of the year, buyers and sellers find themselves at a critical crossroads. While some are hesitating, hoping for lower mortgage rates in 2025, others are taking advantage of current opportunities in a rapidly evolving market.

In this analysis, we’ll explore current trends, forecasts for the end of the year, and strategies to maximize your chances of success in this particular context.

Time needed: 10 minutes

Real estate market analysis in 2024
Buyer real estate strategy: should you wait for interest rates to fall?
Sellers real estate strategy fall 2024
Forecasts for late 2024: What impact on the real estate market?
Real estate advice for buyers and sellers – Fall 2024

Real estate market analysis in 2024

The year 2024 was marked by surprising momentum in the real estate sector, despite an uncertain global economic environment.

Since the start of the year, the market has shown remarkable resilience, with real estate sales up 12% to 15%, exceeding the expectations of many experts. This increase was accompanied by a slight rise in prices, from 3% to 4%, which outstripped the rate of inflation, signalling sustained demand for properties, particularly in urban areas.

Check out our real estate statistics to make sure you don’t miss out on any market trends!

Interest rates, while still relatively high compared to those seen over the past decade, have not dampened buyer enthusiasm.

Indeed, the anticipation of a possible drop in mortgage rates in 2025 has prompted many buyers to accelerate their purchasing decisions, fearing that prices of the most sought-after properties will rise as a result of the expected acceleration in demand following the anticipated drop.

lower interest rates article image cover

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On the sales side, 2024 was also a strategic year.

Aware of the changing market, many have adjusted their pricing expectations, setting negotiation margins of 2 to 3% to attract quick bids. This approach has enabled us to maintain a high level of activity and prevent sales from stagnating, despite economic and geopolitical uncertainties.

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image cover article analyzing a real estate market - graph and stats image

In summary, the real estate market in 2024 has shown unexpected robustness, with sustained activity by buyers and sellers adjusting their strategies in line with short- and medium-term economic forecasts.

This momentum is set to continue into the autumn, with important implications for buying and selling decisions.

Buyer real estate strategy: should you wait for interest rates to fall?

One of the big questions for buyers in 2024 is whether to wait for a possible drop in mortgage rates in 2025, or act now.

The anticipation of lower rates, potentially around 4 to 4.25%, is prompting some buyers to postpone their purchase, hoping to benefit from lower monthly payments. However, this strategy carries risks.

Waiting could mean facing increased competition when rates fall, which could lead to higher prices, especially for the most sought-after properties. Indeed, buyers could find themselves in a situation where, despite a lower mortgage rate, rising prices offset these savings, making the purchase as expensive, if not more so, than at present.

Waiting might seem a good idea, but it’s a risky gamble. If prices rise faster than rates fall, buyers could find themselves paying more for similar properties. The important thing is to weigh up the risks and not miss a good opportunity by hoping for ideal conditions that may never materialize.

Kyle Shapcott, real estate expert

What’s more, the current market offers certain advantages for buyers: less competition in early autumn, and sellers who are more inclined to negotiate. These conditions could make it possible to get better value for money now, rather than waiting for a hypothetical improvement in conditions.

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So, for those who find a property that meets their criteria, it might make sense to make an offer now, with closing in a few months, taking advantage of both current conditions and a possible drop in rates between now and the end of the year.

This strategy combines the best of both worlds: securing the desired property while potentially benefiting from better financing conditions.

Sellers real estate strategy fall 2024

For sellers, the autumn of 2024 represents a strategic period in which setting the sale price plays a crucial role in the success of the transaction.

The market, though buoyant, is influenced by buyers’ expectations of a possible drop in mortgage rates in 2025. To maximize your chances of selling, it’s essential to price the property at the current market level, while leaving a small margin for negotiation, usually around 2-3%.

“In autumn 2024, setting the right price is more crucial than ever. Sellers who adjust their price to the current market, while leaving a small margin for negotiation, give themselves the best chance of success. It’s all about balance: attracting buyers without undervaluing the property.”

Kyle Shapcott, real estate expert

This strategy maintains the interest of potential buyers, while encouraging a rapid decision on their part. Indeed, hesitant buyers could be encouraged to make an offer to avoid the property being bought by someone else. What’s more, by being realistic about the selling price, sellers can avoid unnecessarily prolonging listing time, which could attract less attractive offers.

Another aspect to consider is the presentation of the property. In the fall, homes need to be showcased to stand out in a market where supply can be high. Investing in minor improvements, home staging, or simply making sure the property is well maintained can make all the difference in attracting buyers’ attention.

Discover Valérie’s video tips for maximizing your property’s value and presentation:

In conclusion, for sellers in 2024, this is a time when pricing strategy, combined with careful presentation, can maximize the chances of success. By being proactive and adapting to current market conditions, sellers can take advantage of fall real estate activity and make a profitable sale.

Real estate advice for buyers and sellers – Fall 2024

Autumn 2024 is a pivotal time for the real estate market, with opportunities for both buyers and sellers.

Whether you’re thinking of buying a new property or selling your existing one, it’s crucial to adopt a well-thought-out strategy that’s adapted to current market conditions.

Here are a few key tips for navigating this constantly dynamic market.

For buyers :

– Act fast: If you find a property that matches your needs, consider making an offer now rather than waiting for rates to fall. Today’s market offers less competition, which may enable you to negotiate a better price.

– Financial planning: Make sure you have a clear vision of your borrowing capacity, taking into account current rates and possible future adjustments.

For sellers :

– Realistic pricing: Set a competitive price, taking into account the current market value, while leaving a small margin for negotiation. This will encourage buyers to act quickly.

– Property preparation: Invest in aesthetic improvements and make sure your property is impeccably presented to attract potential buyers at first glance.

In autumn 2024, whether you’re buying or selling, the key to success lies in a well-thought-out strategy tailored to current market conditions. By being proactive and flexible, you can make the most of this transition period.

Conclusion

Autumn 2024 promises to be a period rich in opportunities and challenges for players in the real estate market.

Buyers need to weigh the option of acting quickly against that of waiting for potentially lower rates, while sellers need to focus on a realistic pricing strategy to maximize their chances of success.

Ultimately, careful preparation and a flexible approach will enable everyone to make the most of this market in transition. To help you navigate this strategic period, put your trust in our team of Montreal real estate brokers.

Kyle Shapcott

kyle@equipels.com

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Kyle has been an expert on the real estate market for over 10 years. He is passionate about Montreal and the city’s real estate sector, and regularly shares his analysis and advice in his articles.

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