As we move into 2025, the Canadian real estate landscape is
telling a story of two halves: a complex, regionalized reality on the ground
and a growing sense of optimism on the horizon. After a year defined by
interest rate adjustments and a "wait-and-see" attitude from many
consumers, we are finally seeing the "winds of change" begin to blow
through our housing markets.
A Rebound Rooted in Optimism
The 2025 RE/MAX Housing Market Outlook highlights a
significant shift in sentiment. With the Bank of Canada’s series of interest
rate cuts finally taking hold, 36% of Canadians are now optimistic that the
housing market will improve this year. This isn't just a feeling—it's backed by
data. We are forecasting a 5% increase in the national average residential
sale price and an uptick in sales activity in 89% of the regions we
surveyed.
The Regional Divide
One of the most important takeaways for 2025 is that there
is no "single" Canadian market. We are seeing a
"tug-of-war" between regions:
- The
West and Prairies: Regions like Edmonton and Calgary continue to lead
the charge with projected price growth as high as 10%, driven by
relatively better affordability and strong migration.
- Ontario
and British Columbia: These provinces are seeing a transition. In
markets like Toronto and Vancouver, we are seeing a shift toward more
balanced conditions. This increase in inventory is providing a rare window
of opportunity for buyers who were previously priced out.
- The
Condo Market: Our recent reports show that while the condo segment has
been sluggish, particularly in the GTA, it is creating an entry point for
first-time buyers and "upsizers" who are ready to act before the
market tightens again in mid-2026.
New Rules, New Buyers
Perhaps the most encouraging trend for 2025 is the return of
the first-time homebuyer. With the introduction of the 30-year mortgage
amortization for first-time buyers and those purchasing new builds, the barrier
to entry has lowered slightly. While the "affordability crisis"
remains a very real challenge, the combination of lower rates and more flexible
mortgage rules is unlocking pent-up demand.
The RE/MAX Agent Advantage
In a market that is constantly recalibrating, the value of
professional guidance has never been higher. Whether you are a seller
navigating a more balanced market or a buyer trying to find value in a
high-inventory zone, the "local expertise" of a RE/MAX agent is your
greatest asset.
We believe that home ownership remains the best long-term
investment a Canadian can make. As we look ahead, the market is finding its
footing, and for those who are prepared, 2025 offers a unique moment to make
their move.
