Real Estate Outlook for Castlegar and Grand Forks in 2024
In this post, we’re breaking down what’s cooking in the real estate scene for Castlegar and Grand Forks in the Kootenay region for the upcoming year, 2024. As always, you’re encouraged to get in touch with one of our amazing real estate agents in the area for advice and guidance.
Follow along below to see what’s being predicted for the upcoming year in real estate ahead!
So, here’s the scoop on the Kootenay region’s economy—it’s been cruising at a slower pace compared to previous years. Growth has been somewhat stuck, especially when you look at it compared to other regions. Despite more folks moving in, the job market hasn’t been super exciting, which has led to more people being out of work, bumping up the unemployment rate to around 5.3 percent.
What’s Been Happening in the Housing Market?
The housing game here has been pretty buddy-buddy with interest rates throughout 2023. When the Bank of Canada hit the brakes on rate hikes early in 2023, house sales shot up. But then, when those rate hikes resumed later in the year, sales took a nosedive. Average prices went on a rollercoaster too—first dropping in 2022 due to higher rates, then picking up steam after the Bank of Canada took a pause. Though prices have taken a slight dip since summer, they’re still riding high, up around 18 percent since the start of 2023.
Why Prices Hold Steady in Kootenay:
Surprisingly, despite the sluggish economy and not-so-hot job market, housing prices in Kootenay have been like the little engine that could—holding steady. One reason for this resilience is the region’s relative affordability and the fact that the people here aren’t overly swayed by changes in interest rates.
Listings and Interest Rates Drama:
Listings for homes kept piling up through 2023, but they’re still way lower than what we saw before the pandemic hit. This shortage is a big reason why prices keep rising faster than usual. The Bank of Canada plans to keep interest rates as they are until about mid-to-late 2024. However, mortgage rates are still high, hovering above 6 percent, which might put a damper on the housing market for a while longer.
Forecast for 2024:
The Association of Interior REALTORS® is predicting a sales dip of about 13 percent in 2023, but hey, chin up! They’re also saying that 2024 could see a sales comeback, with numbers bouncing up by around 7 percent, hitting about 2,900 units. As for prices, they’re expected to keep climbing but not as fast as before, maybe around 1.3 to 3.7 percent for different types of properties.
New Housing on the Block:
In the Cranbrook CMA, housing projects are expected to slow down in 2023 but pick up the pace again in 2024. Fewer standalone homes might be built, but there could be more multiple-unit projects in the works. That could mean some growth happening in the real estate development scene.
What to Watch Out For:
Even with the sales boost expected in 2024, the housing market might still be in a bit of a bind due to those high fixed mortgage rates. Anything surprising happening with inflation, a sudden rise in joblessness, or economic hiccups could push the Bank of Canada to tweak its interest rates earlier than planned.
In a nutshell, Castlegar and Grand Forks’ real estate markets, part of the broader Kootenay region, are holding up quite well despite the economic speed bumps. 2024 might see a sales bounce-back, but keep an eye out because those high borrowing costs could keep things from really taking off. If things shift differently than expected, buyers and sellers better keep their ears to the ground for any surprises in the coming year.
If you’re looking to buy or sell your home this coming year, we encourage you to reach out to a team member right away! We would love to be a part of your team!