Looking forward into 2025, I’m excited to share my thoughts on the recent forecast from the Canadian Real Estate Association (CREA). You might have seen the news that they saw a 5.2% increase in home sales for 2024, and anticipate a remarkable 6.6% jump in 2025. This is excellent news for both buyers and sellers. So let’s break down what this really means for us.
Firstly, let’s talk about interest rates. The CREA has noted a significant shift in expectations regarding interest rate cuts. Previously, many thought we’d be on a multi-year path before seeing a shift to a “neutral” rate by their standards. Now, it seems likely that the Bank of Canada will reach a “neutral” rate by next spring or summer! This is vital because it means buyers who have been sitting on the sidelines, waiting for those more favorable rates, may soon feel more confident in making their purchase. If you’ve been waiting for the right moment to dive into the market, this could very well be it!
Now, you might be wondering what that means for home prices. The CREA saw a modest increase of 0.9% in the national average home price for 2024, bringing it to about $683,200. However, the real excitement lies in 2025, where they’re predicting a more substantial rise to $713,375, a 4.4% increase. This suggests that if you’re considering buying, acting sooner rather than later could save you money in the long run. With prices expected to rise, it’s really a matter of timing—getting in before those increases hit.
For those considering selling their homes, this forecast is your cue to get prepared. The holding pattern we’re seeing might feel a bit stagnant now, but as we approach spring, I anticipate a surge of activity. More buyers will be entering the market, and the key to a successful sale will be positioning your home well. This means ensuring it’s in great shape, marketed effectively, and priced right. I can help you with all of that—after all, my goal is to make your selling experience as smooth as possible.
I also want to highlight how this forecast empowers first-time buyers. If you’re looking to purchase your first home in Ottawa, it’s essential to stay informed. The current climate may feel a bit daunting, but with interest rates expected to decline, it could present an excellent opportunity for you. I’m here to help guide you through the process, don’t hesitate to reach out.
Read the full CREA article here.
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