Unless you happen to have a crystal ball and some special powers, smart predictions (and a trusted realtor) are the next best things when it comes to timing the real estate market. Here’s what experts are predicting will shape the landscape in 2025.
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A jump in home sales in 2025
According to the Canadian Real Estate Association (CREA), home sales saw a 7.7% increase in October, meaning the market is already heating up heading into the new year. With another rate cut of 50-basis points and another announcement scheduled for January 29—expected to include another 0.25 percentage point reduction—mortgage rates are likely to continue declining, potentially reaching even lower levels by early 2025. This means that spring—a popular time for house hunting and selling anyway—is primed to heat up.
Pent-up demand could create a frenzy
Many would-be home buyers (both first-time homebuyers and those looking for bigger homes) have been sitting on the sidelines for the past couple of years, ever since the pandemic housing craze. However, with mortgage rates shifting, those potential buyers could hit the real estate market in full force in search of their new home.
Condos may still have a tougher sell
The condominium market has taken a hit over the past couple of years. In the third quarter of this year, the Greater Toronto Hamilton Area (GTHA) new condominium market reported the lowest quarterly total sales since 1995. As condos sit empty, owners are opting to rent out units instead, and it seems this will continue into the new year.
A renewed optimism
After a few years of watching and waiting, Canadians are right to feel more optimistic about real estate in 2025. With a more active market in store, there’s a sense of built-up anticipation for what’s to come. Do you think these are accurate 2025 real estate predictions?
