Canada Real Estate Market Set for a 2025 Revival Amid Shifting Trends
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Canada’s real estate market is expected to rebound strongly in 2025, with a dynamic spring season anticipated as early as March. Stabilizing interest rates, returning sidelined buyers, and an increase in listings are seen as key drivers of this resurgence. After a subdued spring in 2024, heightened buyer demand is predicted to encourage more sellers to enter the market, fostering a more traditional surge in activity.
A wave of mortgage renewals in 2025 may further boost inventory as homeowners transition from historically low interest rates to higher rates above 3%. This shift is likely to prompt some downsizing, especially in major markets like Toronto and Vancouver, where conditions now favor buyers. Approximately 1.2 million mortgages are expected to renew next year, creating opportunities for both buyers and sellers.
However, challenges remain in the condo market, particularly for investors facing high borrowing costs and diminishing profitability. Rising ownership costs and stagnant rental income growth have led to increased listings, with condo sales in key markets like the GTA hitting historic lows. Investors also face difficulties in making land investments viable, which could hinder new development efforts despite an active housing market.
Read the full article on: REAL ESTATE MAGAZINE
