What Does Canada's 2025 Housing Market Return to Normalcy Mean?
With all the recent buzz surrounding the latest interest rate cut, you’re likely wondering how the Bank of Canada's decision will impact both the housing market and your situation this December and beyond.
Key Facts
CREA forecasts a 7.8% increase in home sales and a 7% rise in the national average home price.
The recovery is attributed to anticipated rate cuts by the Bank of Canada and changes to mortgage rules by the CMHC.
Let’s break it down for you.
Canada's housing market is expected to see a return to normalcy in 2025, with a traditional spring surge predicted by the Canadian Real Estate Association (CREA). This upswing is anticipated to be driven by a combination of declining interest rates and increased market confidence. CREA forecasts a significant rise in home sales, reaching over 530,000 units, representing a 7.8% increase. Additionally, the national average home price is projected to climb by 7% to roughly $760,120. Which is why there is no such thing as timing the market rather time in the market.
This recovery is largely attributed to anticipated rate cuts by the Bank of Canada. Check out my previous blog post about the Rate Cuts. These reductions are expected to improve affordability to some extent, thereby stimulating buyer activity. The Canada Mortgage and Housing Corporation (CMHC) is also expected to contribute to price stability and growth through changes to mortgage rules, including an increased insurance limit.
While the overall market shows positive signs, the pace of improvement is expected to be gradual, with both buyers and sellers cautiously navigating the evolving economic landscape.
But What Does This Mean For You?
If you're considering buying a home in Canada in 2025, the spring surge could be a great time to enter the market. However, it’s important to start planning now for your specific situation. If you're ready to start your search but not quite ready to make the move, no worries—reach out to me, and I'd be happy to chat and provide you with the VIP experience you deserve. Your next move in the Collingwood area doesn't have to be stressful.
Curious about how this impacts your specific situation? Contact me anytime, that's the VIP approach!