2025 Real Estate Predictions

Real estate predictions for 2025 include: 

• Home prices

  Home prices in Canada are expected to increase in 2025, with some predicting a 4.7% increase to $722,221. Others predict that home prices will increase by 8%. 

• Home sales

  Home sales in Canada are expected to increase in 2025, with some predicting a 16% increase. 

• Mortgage rates

  Mortgage rates are expected to remain in the high 6% range throughout 2025. 

• Housing market

  The housing market is expected to be a seller's market or balanced in most Canadian markets. 

• Affordability

  Affordability challenges persist, but some say that the current environment is more encouraging than in recent years. 

• Building materials

  The price of building materials could increase due to trade hits, which could worsen the national housing crisis. 

• Construction workers

  There is an estimated need for nearly half a million more on-site construction workers over the coming decade. 

Factors that could impact the real estate market in 2025 

• Falling interest rates

• The likelihood of continued economic growth

• Federal measures

• The labor market

• Political uncertainty

• The trade hit

• The gap between the prices of detached houses and condos