Over the past two years, the housing market in British Columbia has closely followed the movements of the Bank of Canada (BoC). Sales declined when the BoC raised rates, briefly recovered when rate hikes were paused and dropped again when rates were tightened over the summer. The expectation for 2024 is that sales will remain tied to monetary policy, and the Bank of Canada has anticipated an end to its tightening cycle and foreshadowed a potential reduction in policy rate during 2024.
The Canadian Real Estate Association (CREA) forecasts the national average home price to climb to $694,173 in 2024. While multiple provinces are forecast to see price gains over and above the national climb, British Columbia’s short term projection remains largely flat, creating a window of opportunity for those who have been waiting to invest in acreage properties.
For farmland in Canada, the average price per acre has skyrocketed by over 800 percent in the past three decades. According to Farm Credit Canada FCC, a Crown corporation that monitors land sales, farmland values rose by approximately 12.8 percent in 2022 and a further 8 percent in 2023. Limited availability and growth in agricultural produce are expected to drive appreciation in the value of farmland.
While market conditions can change due to several domestic and global factors, there are numerous considerations behind the positive market outlook on acreage properties in British Columbia. A few include:
– Demand for Rural Properties: The appeal of rural living, especially on acreages, has been growing. Many Canadians seek larger properties for privacy, outdoor space, and a closer connection to nature.
– Customization and Flexibility: Acreage properties offer significantly more room for customization and flexible living in terms of home design and land use. Buyers have the freedom to build larger homes, add outbuildings, or create specialized areas such as gardens and orchards. This flexibility allows individuals to tailor their property to meet their desired lifestyle and preferences.
– Work-from-Home Impact: Remote work culture has influenced property preferences. People are increasingly searching for properties with home offices, ample outdoor space, and a more relaxed lifestyle – acreages can offer all of these things.
– Investment Potential: Acreage properties offer a bright long-term investment potential, especially if there’s ongoing urbanization or development in surrounding areas.
As we get into 2024, it is expected to be a positive year to invest in agricultural and acreage properties. To get the most accurate and up-to-date information, get in touch with our team at BC Farm & Ranch by clicking here. With over 200 years of combined experience, we are British Columbia’s first and only real estate brokerage dedicated completely to agricultural and acreage properties. If you have any questions or are in the market for buying or selling a farm or acreage, we’re here to help!