For the past few years, high interest rates, increases in the cost of living, and political and economic worries have kept Canada’s housing market fairly flat. But with both mortgage rates and inflation now on their way down, 2025 is increasingly shaping up to be a busy market.
“I believe the first three months of 2025 will be one of the best times to buy in a very long time,” says REALTOR® Romey Halabi, founder of Toronto Realty Boutique in Toronto, Ontario.
In Toronto, Halabi says that will likely lead to something that hasn’t happened in “quite some time,”: a condo market that’s favourable to buyers simply because of the inventory that’s on hand.
Alan MacDonald, a Chartered Financial Analyst (CFA) and Senior Investment Advisor with RBC Dominion Securities’ MacDonald Advisory Team in Ottawa, Ontario, cautions even if prices fall, however, many Canadians will still be unable to afford to buy a home.
“Falling interest rates mean it’s easier to afford a larger mortgage, which typically draws more people into the real estate market,” MacDonald explains. “But one of the side effects of falling rates over the last 15 years has been an unprecedented boom in housing prices in Canada. So while falling rates should push more people into the market, the hurdle is there are fewer people who can afford to take the plunge.”
In addition, there will likely be a federal election in 2025, which could impact both home sales and prices.
“As we’ve seen in the past, federal elections can influence the housing markets, especially if they involve policy changes that promote affordability and impact demand and prices,” says Luisa Hough, a mortgage broker in Surrey, British Columbia, and co-founder of Verico Xeva Mortgage.
“But along with declining inflation, the predictions are to expect economic stabilization in 2025, which should increase consumer confidence and the housing market,” she adds.
-Credits: Realtor.ca (01/06/2025) David Elver Hoping To Buy A Home In 2025? Here's What You Need To Know!
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