According to the latest data from the Canadian Real Estate Association (CREA), home sales are starting to recover, showing a 3.7% rise in sales activity over the past several months. What’s more, the number of new property listings is also rising by 1.5%. With more activity stirring to life in the housing market, though, you may be wondering if now is the right time to buy a condo or wait until 2025. Here’s a closer look at the current conditions, future outlook, and personal considerations to take into account as you make your decision.
Current Market Conditions
Image via Unsplash by Robert Macleod
Although there’s been a consistent rise in sales activity within the housing market, the landscape is still hitting below-average numbers. While the 1.5% rise in new real estate listings bodes well for the current market, it’s a far cry from what it was pre-2021. Additionally, it remains the lowest level of active real estate listings since June of last year.
Coupled with this are the higher interest rates and the squeeze on the ratio of sales to new listings. With a decline in the number of new property listings, those who are looking to make a purchase this year may need to consider the balance between supply and demand.
Future Outlook
Due to the increasing demand for housing combined with new homeowners entering the market, you’ll likely see some differences going forward. For one, property prices have steadily dropped — albeit by a small percentage — which means sellers may lose on value. For buyers, though, this bodes well for the future and can mean slightly lower sales prices over time.
Another factor to consider is the population rise, which is expected to reach 1.45 million new homebuyers by 2025. This could limit the recovery process in the market with higher demand than supply. So, you might get prepared to purchase if you’re in the market for a condo.
Potential for Investment
In addition, interest rates are expected to dip, giving a reprieve to buyers looking for the perfect real estate project. So, if you’re planning to buy a condo, you’ll want to watch for lower interest rates and sales prices over the next several months.
With the market predicted to see at least some reprieve, it may be a good idea to chat with a financial advisor or real estate agent to figure out the best move for you. It could be worth it to purchase a condo sooner as a potential investment for the future. Buying a condo when the sales prices dip can mean a chance at generating a profit should you decide to sell later.
With the mix of factors contributing to potential changes in the housing market, it’s also important to consider the timing of your purchase. With the expected rise in new property listings, you might consider making a financial plan to buy a condo well before 2025. This can lead to potential savings on your purchase and the chance to develop a profitable investment over time.