The Canadian housing market is set for a notable rebound in 2025, driven
by widespread price growth and increased market activity. Interest rate cuts in
late 2024 have renewed consumer confidence, sparking optimism and opportunities
for both buyers and sellers. Here’s what you need to know about the 2025
housing market outlook, as revealed by RE/MAX Canada and its network of brokers
and agents.
National Market Highlights
·
National Average Price Growth: The average residential
price is expected to rise by 5% in 2025. RE/MAX regions surveyed predict price
increases ranging from 0.1% to as high as 10%.
·
Market Balance: Sellers’ markets are likely to
dominate, with 44% of regions favoring sellers, 33% expected to remain
balanced, and only 17% favoring buyers.
·
Consumer Optimism: Entering 2025, 36% of Canadians
believe the housing market will improve, reflecting growing confidence in the
market’s recovery.
Consumer Trends and Expectations
A Leger survey commissioned by RE/MAX Canada provides insights into Canadians’ perspectives on the housing market:
·
Homeownership Status: 60% of Canadians own
their homes, while 28% are renters.
·
Optimism: Half of Canadians feel more optimistic about the
housing market compared to last year, and 73% believe homeownership remains the
best long-term investment.
·
Affordability Challenges: While 43% of
Canadians still view homeownership as out of reach, 40% are willing to explore
new neighborhoods to manage affordability. Meanwhile, 59% doubt that new
mortgage reforms will effectively address the crisis.
·
Climate Consciousness: Nearly half (47%)
prioritize homes in locations less susceptible to climate change impacts.
·
Value of Real Estate Professionals: 62% of Canadians are
confident that working with a professional real estate agent will bring
significant value to their buying or selling journey.
Regional Market Shifts
RE/MAX brokers and agents shared insights into local market trends and
their expectations for 2025:
·
Sellers’ Markets: Regions like
Victoria, Greater Vancouver Area, Edmonton, Regina, and Sudbury are expected to
favor sellers.
·
Balanced Markets: Key markets,
including Mississauga, Brampton, Toronto, Ottawa, and Kitchener-Waterloo, are
likely to maintain balanced conditions.
·
Buyers’ Markets: Areas like Hamilton,
Burlington, Peterborough, and Muskoka are anticipated to favor buyers.
·
Mixed Conditions: Calgary and Niagara
will experience a mix of market conditions.
What’s Driving the Market?
·
First-Time Homebuyers: Representing a
significant driver, many are seeking townhomes and small residential properties
like bungalows.
·
Move-Up Buyers: Families are looking
for larger homes with additional spaces to accommodate changing needs.
·
Retirees: Downsizing remains a key trend, though Calgary
retirees are showing interest in villas and larger condominiums.
·
Detached and Semi-Detached Homes: These remain highly
sought-after, especially homes with income potential to offset rising living
costs.
Looking Ahead
As we enter 2025, the Canadian housing market shows promise for growth
and recovery. With widespread price increases, a shift towards sellers’
markets, and a renewed focus on affordability, it’s an exciting time for
buyers, sellers, and investors alike. Whether you’re entering the market for
the first time or considering your next move, working with a trusted real
estate professional is essential to navigating these dynamic conditions.
Stay ahead of the trends and explore your opportunities with RE/MAX President
expertise guiding your way into 2025!
