If you are eager to buy a house in 2024, you must be concerned about knowing what home prices will look like. Are home prices going to go down in 2024? This question must have crossed your mind several times, if not once. It is better you what awaits you before trying your hand in the real estate market, especially in Canada. You are going to know what exactly will happen right away. The answer to that question is right below.
According to various sources, including TD Economics, the Canadian housing market will rebound in 2024. After home prices go down in 2023 by about 5%, they are expected to bounce back in 2024. In simple words, it means home prices will not continue to go down in 2024. They will return to normal and perhaps start going up again.
If you are planning to look for houses for sale in 2024, you could be caught by surprise. Prices could go up, and you might have a rough time buying a home. You might be interested to know what makes home prices go up. Some of the reasons why home prices go up are as follows:
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High demand for housing
High demand for housing simply means there are more buyers than houses in the market. When more people are yearning to buy homes, the competition in the market becomes tough. At this point, sellers have a say at the end of the day. Home prices are pushed up because more than enough buyers are willing to pay anything that comes their way.
Since there is no housing supply to match the demand, an increase in home prices is the only way out. Whenever you see houses for sale that are too expensive, this could be the reason behind it. Despite prices being high, you might still find something that will suit your budget.
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Decreasing interest rates
Interest rates are usually a very critical factor when it comes to home prices. Decreasing interest rates will eventually make home prices go up. When the interest rates are low, it means more people will afford mortgages. More people will also qualify for mortgages. Mortgages will be affordable, and therefore more buyers will opt to buy.
This will make the demand for housing go up; hence home prices will finally go up. If you didn’t know, this is what happens in the real estate market now, you know. When you proceed with your plans to buy a home, never forget this.
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Availability of mortgages
When more lenders are in place to offer mortgages, more buyers will be willing to take them. A wide variety of mortgage choices will also mean that many buyers will likely qualify for mortgages. When this happens, the demand for housing will be on its way high. The more the availability of mortgages, the more home prices will go up. This influences prices of pre construction homes as well, not just the already existing homes.
Even if home prices start to go up later, investing in real estate is still worth it. It makes sense because of the benefits that come along with it. Do not be tempted to overlook an investment in real estate because you will be missing something important. It’s an investment worth spending your entire savings on. The benefits of investing in real estate are as follows:
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Immense returns
Real estate investment is widely known for its nature of giving back great returns. Once you invest in real estate, things will never be the same again. The investment starts growing right away, and it’s only a matter of time. By the time you decide to sell your property, you won’t believe what you’ll possibly get. Pre construction homes can be a good example because once they’re complete, they give back a lot.
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Steady cash flow
Investing in real estate can be one sure way of realizing a steady cash flow. This can happen when you buy a property and rent. Every month you will receive income paid as rent by the tenants. What a way to make money! For as long as your property continues to exist, you will be entitled to a monthly income.
You will just need to make sure your property is in good condition, and money will keep coming in. If you want this to happen to you, then you should think about this investment. Bring every coin of yours here, and you will never regret it. It is simply worth it.
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Inflation hedge
If you are looking for something that will protect you against inflation, then this is it. Real estate investment is capable of protecting you against the effects of inflation. When the economy is working against everyone, and the cost of living is going up, real estate will take care of you.
When prices of commodities and services are going up, rent will also go up. You will have no choice but to charge your tenants more because that will be the trend in existence. From the rental income you will collect, you will be able to cater for the other expenses that are already high due to inflation. In that case, real estate would have cushioned you in such a hard time.
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Passive income
With real estate investment, you can earn while comfortably sitting in your house. If you have invested in rental property, you will not need to work to earn. Once you have ensured your property is occupied, you sit and wait for the money to locate you. This scenario can as well happen to you if you choose to channel your money into this investment.
Conclusion
You now have the information that you have been seeking for a while. Now venturing into the real estate market will be a straightforward thing if you still have the intention to. If you are still in a dilemma, you better act quickly and get your journey started. There are real estate agents all over, and they can help you arrive at a reasonable decision. Go for a qualified one, and you will have a perfect time in your buying process.