Homes Sales to Increase Across Canada in 2025

Though home sales decreased slightly throughout Canada in 2024, the Canadian Real Estate Association (CREA) predicts home sale activity to increase in the second quarter of 2025.

As interest rates began to decline over the summer of 2024, the CREA predicted an increase of buyers into the market, however, this increase is now expected to take place in the spring and summer of 2025 instead, according to the CREA Forecast.

“It’s possible the type of buyer who was, until recently, entering the market with a three-year fixed rate mortgage has decided to hold off for better rates that now seem just around the corner.” Says the report.

In fact, the CREA forecast outlines that National Home Sales will increase by a total of 6.6% to 499,800 units in 2025. Home sales for 2024 were predicted to increase by 5.2% to 468,900 in 2023. The national average home price is expected to increase another 0.9% year-over-year to $683,200 in 2024, and increase by 4.4% to $713,375 in 2025.

Notably, October 2024 did experience more home sales than expected with a 7.7% increase month-over-month, and a 30% increase compared to October 2023. Both the Greater Toronto Area (GTA) and British Columbia’s Lower Mainland recorded double-digit increases. These were the highest levels recorded since April 2022, according to a report.

“The jump in home sales last month was definitely an October surprise, although with the big interest rate cut of 50 basis points announced during the last week of the month, the increase was more likely related to the surge in new listings we saw in September,” said Shaun Cathcart, CREA’s Senior Economist. “There probably won’t be another rush of new supply like that until next spring, and at that point, mortgage rates should be close to their expected lows, as well. With that in mind, you can think of the October numbers as a sort of preview for what we might expect to see next year.”

Sources:
CREA Forecasts National Home Sales to Climb 6.6% in 2025
However, Canadian Home Sales see Surprise Jump in October