Global real estate market in 2024: challenges and opportunities
Changing trends in the global real estate market will bring different challenges and opportunities in 2024, with affordability and regulatory issues coloring the landscape in different regions. Australia’s house price growth has lost momentum due to affordability concerns and rising borrowing costs, while the US government bond market continues to rise as hopes rise that the Federal Reserve will end its interest rate hikes. It’s showing. Meanwhile, China’s real estate market is suffering from a deepening recession characterized by an accelerating decline in home sales.
UK and Asian markets: a contrasting study
Adding to the global property mosaic, the UK housing market is showing improving affordability trends, which could encourage more people to climb the property ladder. In stark contrast, Asian economies, particularly South Korea and Vietnam, are grappling with housing market difficulties caused by soaring interest rates and regulatory scrutiny.
Canada’s Housing Issues: The Balance Act
While Canada strives to make housing more affordable, it is expected to continue to grapple with pricing and supply issues that are likely to weigh on the rental market through 2024. Despite the surge in rental construction, market equilibrium is not imminent. Rent growth is expected to slow, especially in high-priced markets such as Toronto and Vancouver. While the federal government’s move to waive GST on new rental projects and Ontario’s subsequent decision to eliminate the HST portion of the facing hurdles.
Population growth, immigration, and rental shortages
Population growth due to the influx of immigrants, temporary foreign workers, and international students is also exacerbating the shortage of rental properties. However, despite these challenges, experts do not foresee a significant reduction in rental prices or an easing of market pressures in the short term.
Analysts are optimistic that mortgage costs are likely to fall in 2024 after a year in which mortgage rates soared. The Fed is expected to cut interest rates in 2024, which is expected to bring the federal funds rate down to 4.6%. The housing industry faces challenges such as first-time home buyers struggling to enter the market, a lack of housing inventory, and federal lawsuits that affect agent compensation. Nevertheless, a series of impending interest rate cuts announced by the Federal Reserve has sparked optimism for a market recovery.
of National Association of REALTORS® (NAR) has a positive outlook for the real estate market in 2024 despite the hurdles facing 2023. They forecast a potential decline in mortgage rates, which could increase housing inventory and increase existing home sales by 13.5%. His key initiative for the organization in 2024 is “Ignite Others,” a program aimed at driving community change and empowering first-time buyers. NAR President Tracy Kasper reiterated the organization’s commitment to advocating for policies that strengthen property rights and market stability.
Batdongsan, a real estate research company and buying and selling platform, predicts that the global real estate market will reach a “turning point” in the third quarter of 2024. This is influenced by several factors, including the entry into force of new legislation, expected economic growth, and buyer sentiment. More conservative forecasts. On the other hand, demand for housing will remain strong and real estate values are expected to rise. High-quality properties that meet the needs of investors and occupiers remain in demand, and low mortgage rates and government incentives are likely to contribute to a positive outlook.