Dear Clients,

2025 Canadian Real Estate Market Snapshot

The Canadian real estate market is poised for a dynamic 2025, driven by key factors:

Market Trends: Home sales rebounded in Q4 2024, up 10% from Q3, thanks to a 1.75% cut in interest rates. National home prices rose 0.3% in December but remain 0.2% lower year-over-year. Toronto and Vancouver are forecasted to see modest price increases, while balanced market conditions are expected in Ottawa.

Economic Factors: Lower borrowing costs and wage growth may boost affordability, though persistent supply shortages and affordability challenges remain. Federal policies, including extended mortgage terms and housing incentives, aim to address these issues but may take time to impact supply.

Immigration & Demographics: High immigration targets (465,000+ newcomers in 2025) will fuel demand in urban centers, adding pressure to the rental and housing markets. Millennials and Gen Z buyers are driving suburban growth while aging populations create opportunities in downsizing markets.

Political and Global Impacts: Government measures like speculation taxes and foreign buyer restrictions will influence market dynamics. Geopolitical uncertainties and currency fluctuations could also sway foreign investor behavior.

Outlook: While lower interest rates and strong immigration will likely stimulate demand, supply constraints and affordability challenges could temper growth. Buyers and investors should stay attuned to regional trends and economic shifts to navigate opportunities in this evolving landscape.

For buyers, the current market offers opportunities with healthy inventory, stable prices, and new mortgage regulations favoring first-time buyers, such as 30-year amortizations and higher insured mortgage limits.

For sellers, spring looks promising with growing confidence, more showings, and faster sales cycles. The evolving landscape could revitalize the market, creating opportunities to capitalize on improving conditions.

THIS IS A TIME FOR STRATEGY.

If you’re considering buying or selling, our team is here to guide you. Here’s to a successful year ahead!
With gratitude.

Enjoy reading our monthly market report here

DASH Property Management