National Market Trends
Interest rate cuts prompt a positive outlook for the Canadian housing market in 2025
A series of interest rate cuts in 2024 have left many Canadians with a positive outlook for the housing market in 2025. While ideal market conditions—including pent-up demand, softer housing values and increased inventory levels—existed through much of 2024, seven consecutive cuts to the overnight rate were the primary catalyst behind stronger buyer enthusiasm toward the end of the year. A more active market was expected this year, with a national average residential price increase of five per cent, and sales anticipated to rise in 33 out of 37 regions surveyed. However, 2025 has brought a number of "wildcard" factors, including the tariff threat and the federal election, shaking consumer confidence and bringing buyers back to the sidelines. While this uncertainty will be an obstacle for some, lower prices and interest rates present opportunity for others.
highlights
Average price growth in RE/MAX regions surveyed to range from 0.1%-10%.
National average price expected to rise 5% in 2025
44% of regions will favour sellers, 33% will balance out, and 17% will favour buyers.
Seller's markets likely to dominate in 2025
36 per cent of Canadians are optimistic that the housing market will improve in 2025.
Market optimism emerges heading into 2025
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.
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. 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.
2025 Canadian Housing Market Outlook
Canadian Consumer Trends
We surveyed Canadians on their perceptions of the 2024 housing market, and their expectations for 2025.
Western Canada
Heading into 2025, British Columbia and the Prairies are anticipating average residential prices to rise across the region by as much as three to10 per cent. Specifically, sale prices are anticipated to increase by three per cent in Kelowna/Central Okanagan, four per cent in Vancouver Island, seven per cent in the Greater Vancouver Area (GVA), five per cent in Calgary, Alberta, 10 per cent in Edmonton, Alberta, and five per cent in Winnipeg, Manitoba. Sale transactions in the region are also anticipated to increase by four to 20 per cent in Vancouver Island, GVA, and Kelowna/Central Okanagan, and two to five per cent in Edmonton and Calgary, as well as Winnipeg.
GVA and Victoria are anticipating seller’s markets for 2025, while Vancouver Island and Kelowna/Central Okanagan are balanced heading into the new year. In the Prairies, a mix of both balanced and seller’s markets are anticipated.
of Canadians currently own their home, 28% are currently renting a home, and 8% don’t own or rent.
60%
of Canadians feel more optimistic about the housing market than they did last year.
50%
of Canadians believe that home ownership is the best long-term investment they can make.
73%
of Canadians believe that Canada’s housing market is going to improve in 2025.
36%
of Canadians believe the new mortgage reform rules won’t help solve the affordability crisis.
59%
feel home ownership remains out of reach, and 20% say they can no longer afford to own a home.
43%
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Regional Market Trends
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Atlantic Canada
In 2025, the average residential sale price in Atlantic Canada is anticipated to increase in all markets while the number of sales in some markets are expected to remain the same. Residential sales prices are expected to increase by 1.5 in Charlottetown, Prince Edward Island, 3.5 per cent in Saint John, New Brunswick 5.5 per cent in Fredericton/Oromocto, New Brunswick, five per cent in Halifax, Nova Scotia, eight per cent in Truro & Colchester County, Nova Scotia and St. John’s, Newfoundland.
The number of sales are expected to increase by 1.5 in Charlottetown, five per cent in St John’s, six per cent in Halifax, 10 per cent in Truro & Colchester County. While Saint John and Fredericton / Oromocto are expected to remain flat. Across all markets, first-time homebuyers are expected to drive market activity and single-detached houses are expected to see the most sales activity in 2025.
Ontario
As a result of economic conditions impacting markets across the country, Ontario is anticipating average residential sale price increases across the province. Due to low supply and lack of affordable housing, Toronto expects a slight price increase of 0.1 per cent. Prices are expected to increase by two per cent in Niagara; 2.3 per cent in Hamilton; 2.5 per cent in Ottawa, and Kenora: three per cent in Sault Ste. Marie, Thunder Bay, Muskoka, and Haliburton; four per cent in Kawartha Lakes; 4.5 per cent in London and Burlington; five per cent in Peterborough, Sudbury, North Bay, Durham, Kingston, and York Region; six per cent in Kitchener-Waterloo, Mississauga, and Brampton; and ten per cent in Simcoe County.
Like Western Canada, Ontario is expecting a mix of market types in 2025 as different regions adjust to lower interest rates. Majority of regions (36 per cent) are expected to be balanced markets including Kitchener-Waterloo, the City of Toronto, Brampton, Mississauga, Durham, Kingston, Ottawa, and Sault Ste. Marie including Sudbury, North Bay, Simcoe County, York Region, Windsor, Kenora, and Thunder Bay. 31per cent are expected to be sellers’ markets including Sudbury, North Bay, Simcoe County, York Region, Windsor, Kenora, and Thunder Bay. Meanwhile Peterborough, Kawartha Lakes, Burlington, Hamilton, Muskoka, and Haliburton are expected to be buyers’ markets. Niagara is expected to experience both buyers’ and balanced conditions throughout 2025.
View & download this data table
Renewed confidence in the market was most-notably being felt by first-time homebuyers (seven per cent) according to a Leger surveyed commissioned by RE/MAX Canada. Not surprisingly, first-time homebuyers were the key demographic expected to drive market activity in 81 per cent of regions surveyed.
are confident working with a professional real estate agent will bring value to the homebuying/selling process.
62%
of Canadians prioritize selecting a home in a location less susceptible to climate change impacts.
47%
of Canadians are willing to explore new neighbourhoods to manage and mitigate affordability challenges.
40%
RE/MAX brokers and agents nationwide provided a year-over-year analysis of their local market between January 1 and October 31, and an estimated outlook for 2025. It’s anticipated that 44 per cent regions will shift to a sellers' market, while 33 per cent regions will shift into balance, 17 per cent will favour buyers, and just six per cent will experience mixed market conditions.
Based on insights from the RE/MAX network across Canada, the majority of the regions surveyed noted that first-time homebuyers are the key demographic driving the market across the nation, with many looking for townhomes and small homes such as bungalows, while move-up and move-over homebuyers are seeking larger properties with additional space. On the flip side, retirees are downsizing in most regions, with the exception of Calgary where this population segment is seeking villas and larger condominiums. Many homebuyers are still looking for detached homes, as well semi-detached homes with income potential to off-set rising cost of living. These preferences are likely to continue through 2025.
Despite ongoing affordability and inventory challenges across multiple markets, buyer confidence is returning as first-time homebuyers and sidelined buyers in Ontario feel the impact of lower mortgage rates and the new 30-year amortizations. As a result, majority of regions anticipate first-time homebuyers will drive market activity in 2025, with the exception of larger regions in Southern Ontario including Toronto, Windsor, York Region, and Simcoe County which predict move-up buyers will drive market activity due to the higher home prices for entry level properties.
Atlantic Canada
In 2025, average residential sale prices in Atlantic Canada are anticipated to increase in all markets. Residential sales prices are expected to increase by 3.5 per cent in Saint John, 5.5 per cent in Fredericton/Oromocto, five per cent in Halifax, eight per cent in Truro & Colchester County and St. John’s, and xx in Charlottetown.
Meanwhile, the number of sales are expected to increase by six per cent in Halifax, 10 per cent in Truro & Colchester County, five per cent in St John’s and xx in Charlottetown. While Saint John and Fredericton/Oromocto are expected to remain the same as 2024.
Across all markets, first-time buyers are expected to drive market activity and single-detached houses are expected to see the most sales activity in 2025.
Browse Listings
Market-by-Market Highlights
Vancouver outlook
Vancouver Island outlook
Victoria outlook
Browse Listings
In Alberta, specifically Calgary and Edmonton, continue to see demand from out-of-province buyers from Ontario and British Columbia who are searching for affordability. Calgary, in particular, has seen a boost in popularity in the last few years, and as a result, affordable housing is in low supply. As a result, Edmonton has seen an influx of homebuyers from Calgary who have been “priced out” and looking to Edmonton for an affordable way to enter or invest in the housing market.
Edmonton outlook
Calgary outlook
Kelowna outlook
Kenora outlook
Winnipeg outlook
Regina outlook
Thunder Bay outlook
Sudbury outlook
North Bay outlook
Simcoe County outlook
Haliburton outlook
York Region outlook
Toronto outlook
Brampton outlook
Muskoka outlook
Hamilton Outlook
Burlington Outlook
Mississauga Outlook
london Outlook
Niagara Region Outlook
Kitchener-Waterloo Outlook
london Outlook
Windsor-Essex outlook
Sault Ste. Marie outlook
View & Download the Data Table
Kingston outlook
Kawartha Lakes outlook
Peterborough outlook
Saint John Outlook
Fredericton Outlook
Ottawa Outlook
Charlottetown Outlook
Truro & Colchester Outlook
Halifax Outlook
St. John's Outlook
About the RE/MAX Network
Leger is the largest Canadian-owned full-service market research firm. An online survey of 1,520 Canadians aged 18 years or older, was completed between October 25-27, 2024, using Leger's online panel. Leger's online panel has approximately 400,000 members nationally and has a retention rate of 90 per cent. A probability sample of the same size would yield a margin of error of +/-2.5 per cent, 19 times out of 20.
About the RE/MAX Network
As one of the leading global real estate franchisors, RE/MAX, LLC is a subsidiary of RE/MAX Holdings (NYSE: RMAX) with more than 140,000 agents in almost 9,000 offices with a presence in more than 110 countries and territories. RE/MAX Canada refers to RE/MAX of Western Canada (1998), LLC and RE/MAX Ontario-Atlantic Canada, Inc., and RE/MAX Promotions, Inc., each of which are affiliates of RE/MAX, LLC. Nobody in the world sells more real estate than RE/MAX, as measured by residential transaction sides. RE/MAX was founded in 1973 by Dave and Gail Liniger, with an innovative, entrepreneurial culture affording its agents and franchisees the flexibility to operate their businesses with great independence. RE/MAX agents have lived, worked and served in their local communities for decades, raising millions of dollars every year for Children's Miracle Network Hospitals® and other charities. To learn more about RE/MAX, to search home listings or find an agent in your community, please visit remax.ca. For the latest news from RE/MAX Canada, please visit blog.remax.ca.
Forward looking statements
This report includes "forward-looking statements" within the meaning of the "safe harbour" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "believe," "intend," "expect," "estimate," "plan," "outlook," "project," and other similar words and expressions that predict or indicate future events or trends that are not statements of historical matters. These forward-looking statements include statements regarding housing market conditions and the Company's results of operations, performance and growth. Forward-looking statements should not be read as guarantees of future performance or results. Forward-looking statements are based on information available at the time those statements are made and/or management's good faith belief as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. These risks and uncertainties include (1) the global COVID-19 pandemic, which has impacted the Company and continues to pose significant and widespread risks to the Company's business, the Company's ability to successfully close the anticipated reacquisition and to integrate the reacquired regions into its business, (3) changes in the real estate market or interest rates and availability of financing, (4) changes in business and economic activity in general, (5) the Company's ability to attract and retain quality franchisees, (6) the Company's franchisees' ability to recruit and retain real estate agents and mortgage loan originators, (7) changes in laws and regulations, (8) the Company's ability to enhance, market, and protect the RE/MAX and Motto Mortgage brands, (9) the Company's ability to implement its technology initiatives, and (10) fluctuations in foreign currency exchange rates, and those risks and uncertainties described in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission ("SEC") and similar disclosures in subsequent periodic and current reports filed with the SEC, which are available on the investor relations page of the Company's website at www.remax.com and on the SEC website at www.sec.gov. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made. Except as required by law, the Company does not intend, and undertakes no duty, to update this information to reflect future events or circumstances.
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