As we step into 2025, the real estate market brings a mix of cautious optimism and strategic opportunities. Whether you're looking to buy, sell, or simply understand the shifting landscape, here are the key insights you need to navigate the year ahead with confidence.

Will I Pay More for a Home in 2025 Than in 2024?

Yes, home prices are expected to rise in 2025, but the extent varies by region and property type. The Canadian Real Estate Association (CREA) forecasts a 4.4% increase in the national average home price, reaching $713,375. Royal LePage anticipates a 6.0% year-over-year increase by Q4, with single-family homes leading gains at 7.0% and condos experiencing a more modest 3.5% rise. In the Greater Toronto Area (GTA), detached homes could see a 7.0% increase, while condos may decline by 1.0%.

Will the Market Favour Buyers or Sellers?

The market is likely to tilt toward sellers, driven by tightening supply and increased demand. According to Royal LePage, limited new listings will create a competitive environment, especially for single-family homes. However, the condo market in urban centers like Toronto might offer buyers more opportunities due to an oversupply of inventory.

How Will Pricing Be Impacted?

Price growth will be steady but regionally nuanced. Detached homes, particularly in areas with limited supply, are expected to lead price appreciation. Conversely, the condo market may remain softer, offering a rare window of affordability for first-time buyers. Buyers should keep an eye on local market conditions to identify opportunities.

Will the Market Bounce Back in Terms of Sales Volume?

Yes, sales activity is expected to rebound. CREA predicts a 6.6% increase in national home sales, while RBC and TD Economics project even higher growth rates of 12.5% and 15.8%, respectively. The spring market is expected to kickstart this momentum, fueled by declining interest rates and improved buyer confidence.

What Will Happen with Interest Rates in 2025?

Interest rates are expected to continue declining, albeit at a slower pace. After significant rate cuts in 2024, the Bank of Canada is anticipated to reduce its policy rate to between 2.00% and 3.00% by mid-2025. Fixed mortgage rates should stabilize, and variable-rate loans will likely see further reductions, enhancing affordability for buyers.

How Will This Impact My Purchasing Power?

Lower interest rates will improve purchasing power, particularly for first-time buyers and those looking to upsize. However, affordability challenges remain in high-demand markets. It’s crucial to explore financing options early to understand what’s possible.

If I Have a Mortgage, How Will Interest Rates Affect Me?

For those with variable-rate mortgages, the anticipated rate cuts could lower monthly payments or help you apply more to your principal. Fixed-rate mortgage holders nearing renewal may benefit from reduced rates (based on the bond yields coming down), but it’s essential to review your options with a trusted lender to optimize your financial position.

Should You Wait to Buy or Sell?

No—waiting often means missed opportunities. The best time to move is when it aligns with your personal needs and goals. Timing the market is challenging, even for experts, and the reality is that 2025 remains unpredictable.

What you can control is your preparation. Here’s how to get started:

1. Clarify Your Goals: Define what you need in your next home, including location, size, and features, to support your lifestyle.

2. Research the Market: Explore homes in your desired area to understand pricing and trends.

3. Get a Home Selling Consultation: If you’re selling, learn your home’s current market value and develop a strategy to align your sale with your next purchase.

4. Assess Financing Options: Work with a lender to understand your borrowing capacity, mortgage options, and any penalties for breaking or porting an existing mortgage.

We can help. Contact us today to get expert advice.

Final Thoughts

The 2025 real estate market presents opportunities for those prepared to act. Declining interest rates, improving sales volumes, and region-specific price trends provide a landscape where both buyers and sellers can achieve their goals. Success lies in preparation and timely action—don’t let the headlines deter you from making the move that’s right for you.

If you’re ready to take the next step, the Jim Stanton Team is here to guide you through every stage of your real estate journey. Reach out today to start planning your path to success in 2025.

As we step into 2025, the real estate market brings a mix of cautious optimism and strategic opportunities. Whether you're looking to buy, sell, or simply understand the shifting landscape, here are the key insights you need to navigate the year ahead with confidence.

Will I Pay More for a Home in 2025 Than in 2024?

Yes, home prices are expected to rise in 2025, but the extent varies by region and property type. The Canadian Real Estate Association (CREA) forecasts a 4.4% increase in the national average home price, reaching $713,375. Royal LePage anticipates a 6.0% year-over-year increase by Q4, with single-family homes leading gains at 7.0% and condos experiencing a more modest 3.5% rise. In the Greater Toronto Area (GTA), detached homes could see a 7.0% increase, while condos may decline by 1.0%.

Will the Market Favour Buyers or Sellers?

The market is likely to tilt toward sellers, driven by tightening supply and increased demand. According to Royal LePage, limited new listings will create a competitive environment, especially for single-family homes. However, the condo market in urban centers like Toronto might offer buyers more opportunities due to an oversupply of inventory.

How Will Pricing Be Impacted?

Price growth will be steady but regionally nuanced. Detached homes, particularly in areas with limited supply, are expected to lead price appreciation. Conversely, the condo market may remain softer, offering a rare window of affordability for first-time buyers. Buyers should keep an eye on local market conditions to identify opportunities.

Will the Market Bounce Back in Terms of Sales Volume?

Yes, sales activity is expected to rebound. CREA predicts a 6.6% increase in national home sales, while RBC and TD Economics project even higher growth rates of 12.5% and 15.8%, respectively. The spring market is expected to kickstart this momentum, fueled by declining interest rates and improved buyer confidence.

What Will Happen with Interest Rates in 2025?

Interest rates are expected to continue declining, albeit at a slower pace. After significant rate cuts in 2024, the Bank of Canada is anticipated to reduce its policy rate to between 2.00% and 3.00% by mid-2025. Fixed mortgage rates should stabilize, and variable-rate loans will likely see further reductions, enhancing affordability for buyers.

How Will This Impact My Purchasing Power?

Lower interest rates will improve purchasing power, particularly for first-time buyers and those looking to upsize. However, affordability challenges remain in high-demand markets. It’s crucial to explore financing options early to understand what’s possible.

If I Have a Mortgage, How Will Interest Rates Affect Me?

For those with variable-rate mortgages, the anticipated rate cuts could lower monthly payments or help you apply more to your principal. Fixed-rate mortgage holders nearing renewal may benefit from reduced rates (based on the bond yields coming down), but it’s essential to review your options with a trusted lender to optimize your financial position.

Should You Wait to Buy or Sell?

No—waiting often means missed opportunities. The best time to move is when it aligns with your personal needs and goals. Timing the market is challenging, even for experts, and the reality is that 2025 remains unpredictable.

What you can control is your preparation. Here’s how to get started:

1. Clarify Your Goals: Define what you need in your next home, including location, size, and features, to support your lifestyle.

2. Research the Market: Explore homes in your desired area to understand pricing and trends.

3. Get a Home Selling Consultation: If you’re selling, learn your home’s current market value and develop a strategy to align your sale with your next purchase.

4. Assess Financing Options: Work with a lender to understand your borrowing capacity, mortgage options, and any penalties for breaking or porting an existing mortgage.

We can help. Contact us today to get expert advice.

Final Thoughts

The 2025 real estate market presents opportunities for those prepared to act. Declining interest rates, improving sales volumes, and region-specific price trends provide a landscape where both buyers and sellers can achieve their goals. Success lies in preparation and timely action—don’t let the headlines deter you from making the move that’s right for you.

If you’re ready to take the next step, the Jim Stanton Team is here to guide you through every stage of your real estate journey. Reach out today to start planning your path to success in 2025.

Re/Max & Zoocasa 2025 Predictions

The 2025 housing market is shaping up to be a year of opportunity, especially in the Durham Region and the Greater Toronto Area (GTA). Two recent reports—Re/Max’s 2025 Canadian Housing Market Outlook and Zoocasa’s 2025 Canadian Housing Market Predictions—offer key insights that paint an optimistic picture for buyers, sellers, and investors alike. Here is how they see things playing out in 2025 and some potential tips for buyers and sellers within the Durham Region.

Lower Rates, Higher Demand

Both reports agree: Declining interest rates are expected to be a game-changer. With the Bank of Canada easing rates and new mortgage rules extending amortization periods to 30 years, sidelined buyers are poised to re-enter the market.

👉 First-Time Buyers Surge: Re/Max predicts an influx of first-time buyers, bolstered by improved affordability. This trend will likely drive demand for entry-level homes, such as townhouses, smaller detached homes, and even some condos.

Balanced Markets Dominate in Ontario

While 44% of Canadian markets will favor sellers, Durham Region is part of the 36% of Ontario markets projected to remain balanced.

✅ Durham’s Advantage: A balanced market means fair opportunities for both buyers and sellers. Prices in Durham are forecasted to rise by 5% over 2024 levels likely stimulated by competition amongst first-time buyers and more downsizers.

🏡 Affordability Shifts: 40% of Canadians are open to exploring new neighborhoods to mitigate affordability challenges. This could make Durham an attractive destination for those priced out of Toronto or other high-cost areas.

Downsizing & Inventory Growth

With 1.2 million Canadian mortgages up for renewal in 2025 (per CMHC), many homeowners will look to downsize to smaller, more affordable properties.

👉 Takeaway for Sellers: If you're considering an upgrade from an entry-level home in 2025, now could be an ideal time to prepare, as downsizing demand and an influx in first-time buyers are expected to fuel competition in the smaller detached and townhouse segments.

Opportunities for Condo Buyers

The condo market has faced challenges, particularly in the GTA, where sales hit record lows in 2024. However, as competition heats up in detached and attached housing, condos could see a resurgence as buyers pivot to more affordable options.

Key Takeaways for 2025

1. Buyers: 2025 is your chance to secure a home before interest rates dip further, potentially pushing 44% of markets into seller territory and driving prices up even in balanced markets. Durham’s balanced market offers excellent opportunities.

2. Sellers: With a 5% price increase expected in Durham, listing your home in the spring market could maximize your return. Better yet, beat the inventory to market and get your listing up ahead of your competition this spring.

What’s Next?

Whether you’re buying, selling, or simply planning your next move, 2025 is brimming with potential. If you’re ready to make a move in the Durham Region or GTA, let us guide you through every step.

Looking to downsize or invest? Drop your questions in the comments or contact us today. Let’s make your 2025 real estate goals a reality!

CONTACT OUR TEAM NOW:

• Ben Stanton, Broker @ 905-995-3372

• Jim Stanton, Broker @905-409-9967

• Brian Stanton, Salesperson @416-571-5272