Despite record-low mortgage rates, California home sales took a dip in September, reaching their lowest point in nine months. The California Association of Realtors (C.A.R.) attributes this slowdown to buyer hesitancy amidst economic uncertainty and the expectation of further interest rate fluctuations. While inventory has improved and prices are expected to moderate, the fourth quarter could present opportunities for buyers who’ve been waiting for a market shift.
Following the Bank of Canada’s third interest rate cut of the year, national home sales in Canada experienced a slight uptick in September compared to August. This trend mirrors the gains observed in the months subsequent to the first two rate cuts. However, experts suggest that while the pace of rate cuts is anticipated to accelerate, some potential buyers might choose to delay their purchases, potentially boosting the rebound expected in 2025.
The Canadian Real Estate Association (CREA) has revised its forecast for home sales activity and prices, anticipating a slower market in the short term due to shifting interest rate expectations. While the market is expected to remain in a holding pattern until next spring, a sharp rebound is predicted for the second quarter of 2025, driven by declining interest rates and pent-up demand.
New single-family home sales declined in August, but the year-over-year figures showed growth. Falling mortgage rates and rising inventory are expected to boost sales in the coming months.
California home sales experienced a seven-month low in August, as buyers adopted a wait-and-see approach despite falling interest rates. The statewide median home price remained relatively stable, edging up slightly from July. However, the sales pace fell from the previous month and was up only slightly from a year ago. The report suggests that buyer demand may be slowly increasing and sales could rise towards the end of the year, pending further interest rate cuts.
Despite two interest rate cuts by the Bank of Canada, the Canadian housing market continues to show signs of stagnation. While home sales saw a slight increase in August, overall activity remains largely unchanged since the beginning of the year. This suggests that buyers are still waiting for more significant price drops and improved affordability before making a move.
Despite falling mortgage rates, homebuyers remain hesitant, leading to slower sales. Builders and economists attribute this to the expectation of further rate declines, with homeowners holding onto their lower-rate mortgages and prospective buyers waiting for even better deals. However, some signs of optimism exist with existing home sales rising for the first time in five months.
The RE/MAX National Housing Report for July 2024 shows a 3.8% increase in home sales nationwide, though the median sales price dipped for the first time this year. Despite a decrease in new listings, inventory grew significantly, offering more choices for buyers. The report also highlights key regional trends and market performance.
Home sales in Calgary saw a modest 0.8% decline year-over-year in May, with 3,092 properties changing hands. The decrease was primarily driven by a drop in sales of lower-priced detached and semi-detached homes. However, the Calgary Real Estate Board (CREB) reported that activity remained 34% higher than historical averages for the month.
Mortgage rates have been rising steadily, with the average 30-year, fixed-rate mortgage reaching 7.17% for the week ending April 25th. Home buyers and sellers may not see any relief soon, as experts anticipate the Federal Reserve will hold rates steady in their meeting this week and only begin to trim borrowing costs in the second half of the year. However, volatility in rates is causing uncertainty in the housing market, as buyers may find they cannot afford the same property from one week to the next. Despite the higher rates, some buyers are adjusting and continuing to purchase homes, while the spring housing market is expected to pick up in late May and early June.
