The Year in Review: 2024
The bank’s strategy of signaling future rate cuts led to a “wait and see” approach from the masses, as buyers held off on making purchases.
This “pause” in the market resulted in a shift from the strong seller’s market of 2021 and 2022, with the “pendulum” swinging towards a more balanced, or even slightly buyer-favored, market in 2023/2024.
The Outlook for 2025
Buyers’ confidence has been on the rise in recent weeks, which could carry over into the new year.
The federal government’s recent mortgage rule changes, including the extension of the maximum mortgage amortization period for first-time homebuyers and the increase in the cap for obtaining an insured mortgage, are expected to help lift home sales and prices.
However, markets in Canada’s two largest provinces, Ontario and B.C., are still dealing with significant supply backlogs that will take time to clear.
Navigating the Shifting Market
Buyers should be prepared to act quickly and decisively, as the increased competition may lead to higher prices.
Sellers will need to be mindful of the market conditions and price their properties accordingly, as the market shifts towards a more balanced, or even slightly seller-favored, landscape.
The Impact on Homeownership
The federal government’s mortgage rule changes may help to alleviate some of the barriers to homeownership, but the supply backlogs in key markets will continue to be a challenge.
Affordability will remain a significant concern, as the balance between supply and demand continues to shift.
Adapting to the New Normal
Real estate professionals will need to stay informed about the latest market trends and be prepared to guide their clients through the shifting landscape.
Homeowners, both current and prospective, will need to carefully consider their options and make informed decisions about their real estate investments.
So what does that all mean?
The real estate market in Canada is a dynamic and ever-changing landscape, and 2024 and 2025 promise to be pivotal years. While the market experienced a pause in 2024, the outlook for 2025 is more positive, with a stronger and more resilient market expected to emerge. However, challenges such as supply backlogs and affordability concerns will continue to shape the real estate landscape. By staying informed, adapting to the changing market conditions, and making strategic decisions, both industry professionals and individual homeowners can navigate the shifting real estate market and capitalize on the opportunities that arise.
