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Canada's real estate market is poised for rising prices in 2025, driven by limited inventory and increased demand spurred by expected interest rate cuts and higher consumer confidence. A projected 5% increase in the national average residential sale price reflects this imbalance. First-time homebuyers, identified as key drivers of activity in most regions, stand to benefit from policy changes like mortgage stress test adjustments, although affordability challenges remain a concern.

Regional trends indicate a shift towards a seller’s market in 44% of Canadian housing markets, with Western Canada leading in price growth. Edmonton and Greater Vancouver are expected to see notable increases of 10% and 7%, respectively, while Ontario’s market anticipates gains of up to 10% in areas like Simcoe County. Atlantic Canada is also set for price increases across all surveyed markets, reflecting robust demand.

Key demographic groups, including first-time buyers, move-up buyers, and downsizing retirees, are shaping the market. Demand for smaller, affordable properties like townhomes remains strong, but limited inventory continues to challenge affordability, particularly in urban centers like Toronto and Vancouver. Experts suggest the improved market environment offers opportunities for buyers, though rising prices are likely to persist nationwide.

Read the full article on: REAL ESTATE MAGAZINE