The Canadian real estate market continues to shift, here’s an April 2025 snapshot of where the market is today — and where it could be headed next. Whether you're buying, selling, or investing, these trends can help you make informed decisions this spring.
The Bank of Canada held rates steady in April, even though many had expected a cut. Inflation is softening — March came in at 2.3%, and April is projected to land closer to 1.5% — but broader inflation pressures kept the central bank cautious for now.
That said, market watchers are increasingly expecting rate cuts later this year, with forecasts pointing to reductions starting as early as June or September.
What this means: While there’s no guarantee, we could see more favourable borrowing conditions in the coming months. For both buyers and sellers, it's important to stay informed and act based on your individual goals and timing — not just the headlines.
The current market offers a healthy level of inventory, giving buyers more choice and flexibility. But looking ahead, the pace of new construction is slowing — setting the stage for increased competition in the coming years.
Here’s what we’re seeing:
Housing starts came in at 214,000, below the 245,000 expected
Ontario starts are down nearly 40% year-over-year
Condo and single-family home construction is easing, while rental development is on the rise
Condo sales are at record lows, pointing to potential supply gaps by 2026
What this means: Buyers have a unique opportunity to take advantage of today’s selection and negotiating power. With fewer homes being built and demand expected to rise, acting now could help secure long-term value ahead of a tighter market.
The market continues to offer excellent conditions for buyers, with slower sales activity and more listings creating space to move without the pressure of bidding wars.
Here’s what the March numbers showed:
Active listings rose 18.8% across Canada, bringing inventory to multi-year highs.
Home prices declined 1.0% in March — offering potential value for those ready to buy.
What this means: Buyers have a rare opportunity to explore homes, negotiate, and make confident decisions. For sellers, this market rewards well-prepared listings, thoughtful pricing, and strong marketing — all of which can help attract serious buyers quickly.
Many Canadians are still cautious due to economic uncertainty and job market concerns.
That said, mortgage defaults remain low.
Lenders expect rate relief, which could boost confidence in the months ahead.
What it means: Even though affordability is tight, there's reason for optimism. This may be a window of opportunity before demand picks up again.
Banks are seeing their strongest mortgage growth in 3 years — a sign that demand is still present, despite high rates.
Some lenders are tightening credit requirements for self-employed buyers, especially in industries impacted by tariffs.
What it means: Financing is available, but it’s important to be well-prepared. Buyers should have documents in order, and investors should plan for backup funding.
Most economists believe the market is nearing an inflection point:
Short-term supply will remain elevated due to a shift from rental properties to resale listings.
But with rate cuts expected and prices already down, many buyers may re-enter the market quickly.
What it means: This slower spring may not last long. If you're thinking of buying, this could be your moment. If you're selling, now’s the time to make your listing stand out.
Whether you're a buyer or a seller, the market is offering a unique window of opportunity right now. Lower prices, more inventory, and anticipated rate cuts could change the game by summer. The key is being prepared and working with a local expert who understands how to navigate these shifts.
Connect with our trusted sales partners to get personalized advice for your situation. 🏡 Book a free consultation or start with a free home evaluation.
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