CREA Forecast: Home Sales Set to Rebound in 2025 – What It Means for You
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If you’ve been holding off on making a move in the housing market, here’s some news that might interest you. According to the Canadian Real Estate Association (CREA), national home sales are expected to climb by 6.6% in 2025, with interest rates anticipated to drop to more neutral levels by next spring or summer. What does this mean for buyers, sellers, and especially for you as a homeowner or potential homeowner? Let’s break it down.
What’s Happening in the Market?
Interest rates have been a big factor in the housing market’s slower pace this year. Many buyers are sitting on the sidelines, waiting for rates to ease before jumping in. But CREA predicts that as rates begin to fall in 2025, we’ll see a sharp rebound in home sales. The national average home price is also forecasted to rise, hitting $713,375 in 2025—a 4.4% increase from 2024.
A Practical Example
Let’s say you’ve been eyeing a home priced at $700,000 today but decided to wait for lower interest rates. If CREA’s forecast is accurate, that home might cost closer to $730,800 in 2025. While lower rates could mean lower monthly payments, the higher price could offset some of that benefit.
For instance, a $700,000 mortgage at today’s rates of 6% might cost you about $4,200 per month. If rates drop to 5% by 2025, your payment on a $730,800 mortgage could still hover around $4,180, depending on your down payment. So while rates are important, timing your purchase with price trends is just as crucial.
What Does This Mean for Your Mortgage?
If you’re already a homeowner, now is a great time to start thinking about your mortgage strategy. Should you refinance when rates drop? Is it better to stick with your current plan? And if you’re renting, it might be worth considering whether getting into the market sooner rather than later could save you money in the long run.
My Recommendation
If you’re planning to buy, sell, or refinance, the key is preparation. Keep an eye on rate movements, but don’t let them be your only guide. Factor in how rising home prices might affect your purchasing power.
Need help figuring out your next move? I’m here to simplify the process. Whether it’s running the numbers, exploring refinancing options, or preparing for a purchase, let’s create a plan that works for you.
Let’s Talk
Navigating the housing market can feel overwhelming, especially when the landscape is changing so quickly. But you don’t have to do it alone. Reach out today, and let’s discuss how these market trends impact your unique situation. Together, we’ll find the right path forward—one that works for you, your family, and your financial goals. Use this link or simply call us at +1 (647) 554-2718.
Please note that this post is for informational purposes only. The information provided does not constitute legal, financial, or mortgage advice. We recommend speaking with a qualified mortgage professional to discuss your individual circumstances and options.
