As we enter 2025, Ontario’s housing market is set to see some changes. Here’s what you can expect:
- Prices Will Rise in Key Areas: Toronto and its surrounding regions are expected to see price increases due to high demand. With limited housing supply in these densely populated areas, competition will remain strong, especially for detached homes and condos near transit hubs. In 2024, average home prices in Toronto rose by 8%, and this upward trend is likely to continue in 2025. Buyers looking to purchase in these regions should act quickly and consider pre-approving their mortgages to lock in favorable rates.
- Rural and Suburban Growth: Smaller communities such as Guelph, Barrie, and Niagara-on-the-Lake are attracting buyers seeking affordability and a slower pace of life. Remote work has made it easier for professionals to move out of urban centers without sacrificing career opportunities. For example, Barrie saw a 12% rise in population between 2019 and 2024, driven largely by families seeking affordable housing options. This trend is expected to continue, with more developments planned in suburban and rural areas.
- Higher Sales Volume: The Bank of Canada’s recent interest rate cuts are likely to stimulate housing market activity. Lower borrowing costs will encourage more buyers to enter the market, particularly first-time buyers who have been waiting for favorable conditions. In Ontario, home sales in November 2024 increased by 15% year-over-year, a sign that demand is already picking up. This increase in transactions will likely persist through 2025, benefiting sellers who may see quicker sales and competitive offers.
What Buyers Can Do to Stay Ahead
- Monitor Interest Rates: Keep an eye on the Bank of Canada’s announcements and work with your mortgage broker to secure the best rate.
- Explore Emerging Markets: Consider buying in growing communities where prices are still reasonable but are expected to rise in the coming years.
- Prepare for Bidding Wars: In high-demand areas, ensure you have a clear budget and are ready to make competitive offers.
By understanding these trends and preparing accordingly, buyers can make informed decisions in a dynamic market.
Stay ahead of the market by keeping an eye on reports from the Toronto Real Estate Board.
