Market Trends and Activity:
- Sales in October and November showed year-over-year increases but remain below average, signaling gradual market recovery.
- Inventory remains elevated due to increased new listings and slower-than-average sales, though a seasonal decline is expected as the year ends.
- The Bank of Canada implemented another significant rate cut, with further reductions anticipated in early 2025. However, fixed mortgage rates, particularly the 5-year term, may not decrease further.
- A significant wave of mortgage renewals is expected over the next two years, but most Canadian homeowners appear capable of absorbing higher renewal rates.
- Buyer confidence is improving, particularly with lower rates and stabilized pricing. However, the pre-sale market remains slow, with recovery tied to rising resale prices.
- Analysts expect the BC market to build momentum in 2025, with sales projected to increase by 13% provincially.
