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The Canadian housing market is expected to stabilize in 2025, driven by declining interest rates and new mortgage lending rules. Forecasts predict a 6% year-over-year increase in the average home price, reaching $856,692 in the fourth quarter of 2025. Single-family detached homes are projected to see a 7% rise, while condo prices are expected to grow by 3.5%. New mortgage rules effective December 15, 2024, aim to support first-time buyers and increase access to housing with expanded amortization options and higher insurance caps.
Market activity has already seen an uptick following recent rate cuts, signaling buyer confidence in stable or rising home prices. Price growth is forecast across all major markets, with Quebec City leading at an 11% increase. Edmonton, Regina, Montreal, Toronto, and Vancouver are also expected to see gains, though the latter two may remain more tempered due to high price levels. Builders are anticipated to respond to increased demand, easing inventory constraints over time.
Despite these positive outlooks, potential disruptions from political changes in Canada and the U.S. could impact the market. The strongest price gains are expected in early 2025, with a 2% rise in Q1, followed by moderate quarterly growth throughout the year. Experts anticipate a return to normalcy in the real estate market, marked by balanced conditions and renewed buyer engagement.
Read the full article on: REAL ESTATE MAGAZINE
