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Canadian real estate had a sluggish start in 2024, with the Bank of Canada holding off on interest rate cuts until June. Despite initial hesitation, buyers returned to the market in the fall, though the early rate reductions hadn't been enough to prompt a full recovery. Heading into 2025, experts are optimistic about strong market activity, aided by lower borrowing costs and favorable buyer policies, despite ongoing affordability challenges.

The Canadian Real Estate Association reported a 26% increase in home sales in November 2024, with home sales for the year up by 6.9%. Industry professionals anticipate continued strong demand, especially from first-time homebuyers. Re/Max expects home sales to rise in most Canadian regions, with some areas seeing increases up to 25%, and the national average home price expected to rise by 5%.

Factors like falling interest rates, recent mortgage rule changes, and the removal of the stress test for uninsured mortgages are expected to support a more robust market in 2025. However, experts caution that while the market will likely heat up in the spring, ongoing affordability and qualification challenges mean that housing prices need to decrease further for significant activity.

Read the full article on: CTV NEWS