Nov 29, 2024
The real estate market continues to pose affordability issues for Canadians across the board, but a key fragment of that market is looking to making significant gains within the next year.
The national average residential price is likely to increase by 5% in 2025, and sales anticipated to rise in 33/37 regions surveyed, with increases up to 25% according to the latest RE/MAX report.
Advertisement
"While affordability challenges persist, the sequential interest rate cuts and changes to the mortgage stress test are a much-needed reprieve for those looking to get into the market," Christopher Alexander, RE/MAX Canada president, said in a statement.
"The current environment is more encouraging than it has been in the past few years, especially for first-time homebuyers. However, a boost in sales, coupled with limited inventory, almost always leads to rising prices, which is the trend we're expecting to see materialize in virtually all Canadian housing markets."
Regional insights
RE/MAX anticipates that 44% regions will shift to a sellers' market, among them Victoria, Regina, Edmonton, Windsor Saint John, North Bay and York Region, which is situated just north of Toronto.
Meanwhile 33% of regions will shift to balance out, including Vancouver Island, Winnipeg, Kitchener-Waterloo, Mississauga, Brampton, Toronto, Ottawa, Kingston and P.E.I.
As well, 17% will shift to a buyers' market, including Hamilton, Burlington, Kawartha Lakes, Muskoka and Haliburton. Finally, 6% – Calgary and Niagara – will experience mixed market conditions.
First-time homebuyers are the one audience group driving the market across the nation, and many are looking for townhomes and small residential properties such as bungalows. Similar to last year, many homebuyers are still looking for detached homes, as well as semi-detached homes with income potential to off-set rising cost of living.
How much home can you afford?
Whether you're hunting for a new home or looking to refinance your mortgage, knowing how much your new loan might cost you is critical. Use our handy mortgage calculator to help you understand what your payments could look like.
Get StartedConsumer insights
According to a Leger survey, commissioned by RE/MAX, 60% of Canadians currently own a home. Meanwhile, nearly half of Canadians (49%) are confident that home ownership is attainable; while 40% are increasingly becoming more open to settling down in new neighbourhoods to mitigate and manage some of the hurdles surrounding affordability.
In 2025, 47% of Canadians prioritize residential properties and areas that are less likely to be impacted by climate change. This is up 14% from 2024.
Advertisement
One-third of Canadians (36%) are optimistic that conditions in the Canadian housing market will improve in 2025.
Additionally, the survey's results also highlight that more than half of Canadians — 62% and up 5% when comparing results from 2024 — are more confident that working with a professional realtor broker or agent will help bring value to the overall buying or selling process.
When looking for information about new neighbourhoods to move to, 36% entrust the expertise of a real estate agent, while 42% still rely on online search engines and 45% ask friends and family.
Survey methodology
An online survey of 1,520 Canadians aged 18 years or older, was completed between October 25 to 27, using Leger's online panel. Leger's online panel has approximately 400,000 members nationally and has a retention rate of 90%.
You May Also Like
- Here’s how to retire in 10 short years no matter where you live in Canada — even if you’re starting with $0 savings
- If you’re still feeling the pinch this month — don’t panic. Here are 5 easy ways to fix your finances without a total overhaul
- How Warren Buffett’s simple buy-and-hold real estate approach offers a lesson for Canadian homeowners and long-term investors
- Approaching retirement with no savings? Don’t panic, you're not alone. Here are easy ways you can catch up (and fast)
Nicholas completed his master's in journalism and communications at Western University. Since then, he's worked as a reporter at the Financial Post, Healthing.ca, Sustainable Biz Canada and more. Aside from reporting, he also has experience in web production, social media management, photography and video production. His work can also be found in the Toronto Star, Yahoo Finance Canada, Electric Autonomy Canada and Exclaim among others.
Managing Money • Mar 06
