This past year has been a roller coaster, so we pulled data and insights from several sources to give you the stability you need heading into 2025. How are Interest rates playing a factor? Will there be another inventory shortage? Is there a market crash looming? Is 2025 a good time to break into the market?
We have the Answers!
Canadians are approaching 2025 with optimism about the housing market, fueled by recent interest rate cuts in late 2024. RE/MAX Canada, along with its network of brokers and agents, predicts a more dynamic market in the coming year. The national average residential price is expected to rise by 5%, with sales projected to increase in 33 of the 37 regions surveyed, showing gains of up to 25%.
As we look ahead to 2025, Canadians are showing renewed confidence in the housing market, driven in part by recent interest rate cuts in late 2024. RE/MAX Canada’s 2025 Housing Market Outlook Report highlights a promising forecast, with the national average residential price expected to rise by 5% and sales activity anticipated to grow in 33 of the 37 regions surveyed. This optimism is underpinned by the belief that homeownership remains a solid long-term investment, as affirmed by 73% of Canadians surveyed.
This renewed market confidence is particularly evident among first-time homebuyers, 36% of Canadians expressed optimism about entering the market in 2025, with most RE/MAX brokers and agents identifying first-time buyers as the key demographic likely to drive market activity. To navigate affordability challenges, 40% of Canadians are open to exploring new neighborhoods, while 47% prioritize choosing homes in areas less vulnerable to climate change impacts.
Beyond shifting preferences, Canadians also see value in professional guidance. 63% expressed confidence that working with a real estate agent will enhance the homebuying or selling process. These factors collectively paint a picture of a dynamic and hopeful year ahead for Canadian real estate.
Based on provincial insights, the majority of the regions surveyed in Ontario noted that first time homebuyers are one audience group driving the market across the province, and many are looking for townhomes and small residential properties such as bungalows, while move-up and move-over homebuyers are looking for larger properties with additional space.
On the flip side, retirees are seeking to down-size in most regions. Similar to last year, many homebuyers are still looking for detached homes, as well semi-detached homes with income potential to off-set rising cost of living. These trends are likely to continue heading into 2025, according to RE/MAX brokers across the province.
VIEW THE FULL OUTLOOK DATA TABLE HERE
With inflation back to the Bank of Canada’s two per cent target and rate cuts expected to continue through this year, Canadians should anticipate lower mortgage rates and better deals in 2025, experts say.
Canadians have been facing higher interest rates over the last few years, after the Bank of Canada hiked its policy rate in the wake of soaring inflation. Since June, however, the central bank has cut its benchmark rate by 175 basis points over five consecutive decisions, including two jumbo 50 basis point cuts in October and December. The Bank’s policy rate now sits at 3.25 per cent. Economists expect that the Bank of Canada will continue to reduce interest rates this year, albeit at a “more gradual” pace.
The scheduled dates for the interest rate announcements for 2025 are as follows:
Wednesday, January 29
Wednesday, March 12
Wednesday, April 16
Wednesday, June 4
Wednesday, July 30
Wednesday, September 17
Wednesday, October 29
Wednesday, December 10
The average sale price in the Niagara housing market has decreased by 0.7% across all property types between 2023 and 2024, from $700,098 to $695,384.
Meanwhile the number of sales transactions increased by 4.2%, from 5,425 in 2023 to 5,652 in 2024.
The total number of listings also saw a healthy increase of 28.6%, from 21,792 properties listed for sale in 2023 to 28,031 listings in 2024.
Looking ahead to 2025, the Niagara housing market is expected to be a mixed balanced/buyer’s market. Average residential sale prices are anticipated to rise by 2%, while the number of sales will likely increase by 4%.
Whether you are planning to buy, sell or invest in the Niagara Region, our team of local agents are committed to servicing your real estate needs with a signature boutique-style approach. We are always open to conversations, with no pressure of obligations!
If you are curious that the market conditions in the new year could benefit your goals, please reach out and any member of the Portfolio Realty Group will be happy to help!
RE/MAX, LLC Real Estate Estate agents Emily Desantis, Scott Sweitzer, Chris Somerfield & Ashton Hendriks. © 2021 Portfolio Realty Group. All Rights Reserved.
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