Realtor group looks to spring sales spike on rate-cut optimism
The Windsor area's housing market will be more active than the rest of Ontario this spring, according to the latest forecast of the Windsor-essex County Association of Realtors (WECAR).
The local resale market has perked up in the past two months and WECAR president Maggie Chen said the local region, unlike other parts of the province, is expected to avoid an economic recession.
“We are already seeing a resurgence in buyer confidence heading into the first part of 2024,” Chen told the Windsor Star.
“Thanks to good economic tailwinds, strong business investment, and stable interest rates, buyers and sellers are more confident heading into the spring. That should create a more active spring market compared to last year.”
Real estate market activity in Windsor-essex has been picking up momentum, with year-overyear sales activity and listings up from 2023.
The association's spring forecast said the stability of interest rates since September and the expectation that rates will be cut and not raised by the Bank of Canada is helping boost consumer confidence.
“New listings are up heading into the spring market and that's good news for buyers,” said WECAR executive officer Krista Gionet. “One important thing to watch is the next interest rate announcement coming from the Bank of Canada in April.
“While it's not clear if rates are going down any time soon, the Bank has signalled that rates are likely to be stable as they continue to monitor inflation and broader economic conditions.”
The Bank of Canada's next scheduled interest rate announcement is April 10.
While the local resale market is becoming more active, the newhome sector is expected to remain in the doldrums. The cooling of the home construction industry saw the area miss its target number for new builds and the provincial funding that would've come with it.
“In 2024, Windsor must commit to putting policies in place to get more homes built,” said Chen.
“Although the city has made good progress on housing permits, we're just not getting shovels in the ground on new homes.
Realtors are committed to working with the city and its leaders to solve the housing affordability challenge.”