The traditionally busy spring season and lower interest rates are two factors that may drive up activity in the housing market.
Our latest Ready to Real Estate podcast episode features two data experts: Ray Wong, Vice President of Data Operations at Altus Group, and Sean Simpson, Vice President of Ipsos Public Affairs. They will talk about what lies ahead for mortgage rates, where supply is headed, and where buying and selling intentions stand.
Hosted by Jason Mercer, TRREB’s Chief Market Analyst, this is a must-listen episode that helps you understand why we’re forecasting resale home sales to reach 77,000 this year. Get more information on the number of new home sales and which areas saw the most activity from the trusted 2024 Market Outlook and Year in Review report and digital digest.
Tight Supply in Both Markets
Our Ipsos polling results share a concerning trend. Those who indicated they were very likely to list their home for sale dropped four per cent compared to our last survey with Ipsos. With fewer homes up for sale, this means supply is an ongoing challenge for those looking to rent or buy in the GTA.
Our population is still growing, and policymakers need to ensure people have a place to call home. The simple solution is to build more homes.
“Policymakers need to focus on reaching the targets set for building homes across the Greater Golden Horseshoe. It’s clear that our regions will only see sustained relief on the affordability front once we remove the roadblocks standing in the way of progress and get shovels in the ground faster,” says Jason.
Despite recent setbacks and delays in construction projects, Ray says there’s a glimmer of hope on the horizon.
“They’re trying to do a mix of balance. They’re looking at the cost, the increased densities, and the greater efficiencies to build townhouses versus semis and detached. They’re also looking at that community part with creating that sense of community within an entire area,” adds Ray.
Efforts to diversify the housing market, including bridging the gap between condos and detached homes and addressing the missing middle, is key to solving the housing crisis and will especially support first-time buyers.
Top of Mind for HomeBuyers
Cost is critical for homebuyers and a major factor for considering a home purchase. But as affordability issues grow in our regions, Jason shares how this is having a negative impact on the well-being of residents.
“Our 2024 Market Outlook and Year in Review report features first-of-its-kind research with CANCEA that uncovers exactly this. We learned that households spending more than 50 per cent of their income on housing experienced a lower well-being score – comparable to some of the most significant health challenges faced by a society, including cancer,” says Jason.
Sean tells us that housing is the second most important issue on the minds of Canadians.
“To be only two points below healthcare is remarkable. And if something isn’t done about housing affordability, I can see a situation where it overtakes healthcare, which would be extraordinary because healthcare is almost always the number one issue in Canada,” says Sean.
To learn more insights into what’s next for new and resale homes, listen to the full conversation on Ready to Real Estate.
