The Canadian housing market has experienced an uncharacteristically busy fall season, with some regions reporting extraordinary activity that has spilled into December. This surprising trend is sparking optimism for a vibrant market in 2025, fueled by favorable policy decisions and economic shifts.
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Federal Policies Boosting Optimism
Key federal initiatives are providing hope for sustained growth in the housing sector. The Bank of Canada’s continued easing of interest rates and the federal government’s implementation of sweeping mortgage reforms—dubbed “the boldest in decades”—are making it easier for buyers to enter the market. These measures are expected to play a significant role in maintaining momentum into 2025.
November Housing Market by the Numbers
Recent statistics from the Canadian Real Estate Association (CREA) reveal impressive growth in housing sales across the country:
- November MLS Sales: 37,855 transactions, up 26% year-over-year.
- Regional Highlights:
- Montreal: 47% increase.
- Greater Toronto Area: 38.6% increase.
- Greater Vancouver Area: 28.6% increase.
According to Marc Lefrancois of Équipe Lefrancois in Montreal, the market has rebounded significantly after a challenging 18 months. He noted that instead of the typical lull in November and December, this year’s activity is unusually high.
Supply vs. Demand: A Tightrope Balance
While buyers are eager to enter the market, inventory remains a challenge. Lefrancois explained that both buyers and sellers are motivated, but the supply of homes hasn’t caught up to demand.
“Prices are starting to go up again,” Lefrancois said. “The problem is that supply isn’t there.”
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December: The Busiest in a Decade for Some
For some agents, December 2024 has been the busiest in years. Tim Hill of Re/Max All Points Realty in New Westminster, B.C., reported unexpected activity, with buyers trying to lock in deals ahead of anticipated further rate cuts in 2025.
In contrast, Randy Ryalls of Royal LePage Sterling Realty in Port Moody noted a slowdown typical for December. However, he remains optimistic about 2025, citing sufficient inventory levels in Greater Vancouver for the first time in years and pent-up demand poised to drive sales.
Positive Outlook for 2025
Industry experts agree that the outlook for 2025 is promising. Brayden Irwin of the Lome Irwin Team in Toronto highlighted that lower interest rates and softened prices are encouraging buyers to return to the market.
“The mortgage reforms are intended to make housing more accessible, allowing more people to participate,” Irwin explained. “If more people participate and supply doesn’t keep up, we could see prices rise.”
Calgary’s Market Heating Up
In Calgary, real estate professionals are experiencing an exceptionally busy December. Joel Semmens of Re/Max House of Real Estate noted a surge in sales activity, particularly in higher-end and inner-city properties.
Renata Reid of Sotheby’s International Realty Canada echoed this sentiment, describing December as “phenomenal” with multiple offers still occurring—a rarity for this time of year.
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What to Expect in 2025
As interest rates continue to decline and federal reforms take effect, the Canadian housing market is poised for a strong 2025. With buyers eager to capitalize on current conditions and sellers preparing for a competitive spring market, the housing sector is expected to maintain its upward trajectory.
If you’re considering buying or selling a home, now might be the ideal time to act before the anticipated market surge in the new year.
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