The Canadian Real Estate Association is optimistic about the future of the housing market. With a strong finish in the fourth quarter of 2024, they anticipate a rebound in housing markets across the country in 2025. Here are some key points from their forecast:
2025 Projections:
- Predicted 8.6% growth in home sales, totaling 532,704 residential properties trading hands.
- National average home price expected to rise by 4.7% annually to $722,221.
- Forecasting a 4.5% increase in national home sales and a 3.3% rise in average home prices for 2026.
Factors Contributing to the Positive Outlook:
- Lower borrowing costs are fueling the improved projections.
- A surge in home sales by 10% during the busy fourth quarter of 2024.
- Expectation for interest rates to stabilize by spring and more properties to hit the market, boosting buyer confidence.
Regional Trends:
- British Columbia and Ontario expected to see robust sales rebounds and larger inventories, with more modest price gains.
- Alberta and Saskatchewan likely to experience significant price increases due to heightened demand.
Cautious Optimism:
Senior economist Shaun Cathcart pointed to potential risks like a trade war with the U.S. that could impact the housing market negatively. Uncertainty about the economy could deter potential buyers. Despite the positive forecast, there are still lingering risks that need to be considered.
Closing Thoughts:
It was a strong finish to the year in the Canadian housing market, with signs of resilience and a shift in mindset among buyers. While there are uncertainties on the horizon, the positive projections for home sales and prices in the coming years offer hope for a robust real estate market. Stay informed and cautious amidst the changing landscape of the housing market.
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