The Real Estate Market is Warming Up with More Listings and Cautious Buyers

A growing number of homebuyers are taking advantage of lower borrowing costs as we move toward the 2025 spring market, resulting in increased transactions and a moderate uptick in average selling prices. However, the positive impact of lower mortgage rates could be reduced, at least temporarily, by the negative impact of trade disruptions on the economy and consumer confidence.

Ontario - A Growing Number of Homebuyers are Taking Advantage of Lower Borrowing Cost.

Toronto, February 7, 2025 -- The Toronto Regional Real Estate Board’s (TRREB) Market Outlook and Year in Review report reveals that a well-supplied housing market will keep average annual home price growth at the rate of inflation, with the average selling price increasing moderately in the Greater Toronto Area (GTA) over the course of the year.

“A growing number of homebuyers will take advantage of lower borrowing costs as we move toward the 2025 spring market, resulting in increased transactions and a moderate uptick in average selling prices in 2025. However, the positive impact of lower mortgage rates could be reduced, at least temporarily, by the negative impact of trade disruptions on the economy and consumer confidence,” said TRREB Chief Market Analyst Jason Mercer.

For 2025, TRREB forecasts: – A total of 76,000 home sales in 2025, up by 12.4% over 2024. Lower borrowing costs coupled with ample supply will improve affordability and prompt more buyers to move off the sidelines. – The average selling price to reach $1,147,000, up by 2.6% over 2024, for all home types combined. Price growth will be stronger for single-family homes, as compared to the well-supplied condo apartment market.

“As we look to the future, prioritizing housing diversity and supply remains paramount. Encouraging the development of missing-middle housing—such as townhomes, duplexes, and low-rise multi-unit buildings—is critical to delivering a range of attainable options for individuals and families. Purpose-built rentals also play a vital role in ensuring everyone has access to a place they can call home,” said TRREB President Elechia Barry-Sproule.

“At TRREB, we believe the solution starts with collaboration. Traffic congestion and affordability are interconnected challenges that require integrated approaches. The current system of high development charges, taxes, and administrative hurdles only exacerbates the issues. This stalls progress on building the housing supply we need to support our growing communities,” said TRREB CEO John DiMichele.

The year started off with GTA REALTORS® reporting 3,847 home sales through TRREB’s MLS® System in January 2025 – down by 7.9% compared to the same period last year. New listings in the MLS® System amounted to 12,392 – up by 48.6% year-over-year. On a seasonally adjusted basis, January sales were up month-overmonth compared to December 2024. The MLS® Home Price Index Composite benchmark was up by 0.44% year-over year in January 2025. The average selling price, at $1,040,994, was up by 1.5% compared to January 2024.

Ottawa’s Market Warms Up with More Listings and Cautious Buyers

Ottawa, February 7, 2025 -- The number of homes sold through the MLS® System of the Ottawa Real Estate Board (OREB) totaled 617 units in January 2025. This was a 4.2% decrease from January 2024.    

Home sales were 13% below the five-year average and 9.6% below the 10-year average for the month of January. 

“Ottawa’s market is seeing increased activity as more listings hit the market and buyers start to re-engage,” says OREB President Paul Czan. “Many buyers and sellers had been waiting for more conducive market conditions, but with the recent rate cut and potentially lower interest rates on the horizon, optimism is growing. While there’s more supply, the availability of suitable properties in various market segments remains tight. This is reflected in some homes selling quickly while others linger on the market. Sellers should be prepared to price competitively and present their homes in the best light to capture buyer interest in this evolving market.”

“The recent Bank of Canada rate cut, the introduction of U.S. tariffs, along with upcoming provincial and federal elections, introduce factors of variability,” adds Czan. “That said, confidence is growing, and more buyers are expected to return to the market in the coming months, leading to an increase in transactions.”

The MLS® Home Price Index (HPI) tracks price trends far more accurately than is possible using average or median price measures. 

The overall MLS® HPI composite benchmark price was $649,900 in January 2025, an increase of 5.2% from January 2024.  

The benchmark price for single-family homes was $713,000 up 2.3% on a year-over-year basis in January.  

By comparison, the benchmark price for a townhouse/row unit was $448,000, down 3.9% compared to a year earlier.  

The benchmark apartment price was $436,900, up 4.5% from last year. 

The average price of homes sold in January 2025 was $670,258, increasing 5.8% from January 2024.  

The dollar volume of all home sales in January 2025 was $413.5 million, up 1.3% from January 2024.  

OREB cautions that the average sale price can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The calculation of the average sale price is based on the total dollar volume of all properties sold. Prices will vary from neighbourhood to neighbourhood.  

The number of new listings saw an increase of 3.0% from January 2024. There were 1,359 new residential listings in January 2025. New listings were 14.1% above the five-year average and 9.3% above the 10-year average for the month of January. 

Active residential listings numbered 3,312 units on the market at the end of January 2025, a gain of 57.3% from January 2024. Active listings were 90.6% above the five-year average and 48.9% above the 10-year average for the month of January. 

Months of inventory numbered 5.4 at the end of January 2025, compared to 3.3 in January 2024. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity. 

Britsh Columbia - Metro Vancouver Market Highlight.

Vancouver, 16 January 2025 --  Homes newly listed on the MLS® in Metro Vancouver* rose 46% year-over-year in January, as sellers appear eager to enter the market to start the year.

The Greater Vancouver REALTORS® (GVR) reports that residential sales in the region totalled 1,552 in January 2025, an 8.8% increase from the 1,427 sales recorded in January 2024. This was 11.3% below the 10-year seasonal average (1,749).

"In the three months preceding January, we’ve watched buyer demand gain momentum, but it appears that momentum is now shifting toward sellers to start the new year. Even with this increase in new listing activity, sales continue to outpace last years’ figures, signaling some buyer appetite remains after the upswing that finished off 2024."

Andrew Lis, GVR director of economics and data analytics

There were 5,566 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in January 2025. This represents a 46.9% increase compared to the 3,788 properties listed in January 2024. This was 31.1% above the 10-year seasonal average (4,247).

The total number of properties currently listed for sale on the MLS® system in Metro Vancouver is 11,494, a 33.1% increase compared to January 2024 (8,633). This is 33.2% above the 10-year seasonal average (8,632).

Across all detached, attached and apartment property types, the sales-to-active listings ratio for January 2025 is 14.1%. By property type, the ratio is 9.2% for detached homes, 18.5% for attached, and 16.5% for apartments.

Analysis of the historical data suggests downward pressure on home prices occurs when the ratio dips below 12% for a sustained period, while home prices often experience upward pressure when it surpasses 20% over several months.

“With new listings outpacing demand to start 2025, price trends saw little fluctuation in January across all segments, with the market overall standing in balanced conditions,” Lis said.

“Our 2025 forecast calls for moderate price growth by the end of the year, but we have cautioned that shocks to the economy such as those currently threatening Canada via tariffs from the US could impact these estimates.

"Going forward, whether these tariffs actually come into force, the duration they remain in place, and the degree to which Canada retaliates will determine the impact to the housing market in our region in the months ahead, if any.”

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,173,000. This represents a 0.5% increase over January 2024 and a 0.1% increase compared to December 2024.

Sales of detached homes in January 2025 reached 380, a 0.3% increase from the 379 detached sales recorded in January 2024. The benchmark price for a detached home is $2,005,400. This represents a 3.1% increase from January 2024 and a 0.4% increase compared to December 2024.

Sales of apartment homes reached 846 in January 2025, a 13.4% increase compared to the 746 sales in January 2024. The benchmark price of an apartment home is $748,100. This represents a 1.7% decrease from January 2024 and a 0.2% decrease compared to December 2024.

Attached home sales in January 2025 totalled 321, a 12.6% increase compared to the 285 sales in January 2024. The benchmark price of a townhouse is $1,105,600. This represents a 2.7% increase from January 2024 and a 0.8% decrease compared to December 2024.

Alberta - Supply Levels Improve in January

Calgary, February 3, 2025 – Following three consecutive years of limited supply choice, inventory levels in January rose to 3,639 units. While the 70% year-over-year gain is significant, inventory levels remain lower than the over 4,000 units we would typically see in January. Inventories rose across all property types, with some of the largest gains driven by apartment-style condominiums.

“Supply levels are expected to improve this year, contributing to more balanced conditions and slower price growth,” said Ann-Marie Lurie, Chief Economist at CREB®. “However, the adjustment in supply is not equal amongst all property types. Compared with sales, we continue to see persistently tight conditions for detached, semi-detached and row properties while apartment condominiums show signs of excess supply for higher priced units.”

Citywide, the months of supply reached 2.5 months in January, an improvement over the one month of supply reported last year, but it is still considered low for a winter month. The month of supply ranged from under two months for semi-detached properties to 3.5 months for apartment-style units.

Rising supply resulted from a boost in new listings compared to sales. New listings rose to 2,896 units in January, compared to 1,451 sales. Sales in January were down by 12% compared to last year. However, even with a pullback in sales, levels remained nearly 30% higher than levels typically recorded in January. 

The total residential benchmark price in January was $583,000, which is relatively stable compared to levels reported at the end of last year and nearly 3% higher than last January. Price growth ranged across districts within the city as well as property types. 

January 2025 Housing Stats

Detached - Driven by gains from homes priced above $600,000, new listings reached 1,228 units in January, which is 29% higher than last year. At the same time, sales activity slowed to 674 units, which brought levels in line with long-term trends. The improvement in new listings relative to sales did help support inventory gains. However, the 1,448 units in inventory are still nearly 27% lower than levels we traditionally see in January, and the months of supply remained relatively low at just over two months. 

While conditions are not as tight as last year, there is some variation within the city districts as more balanced conditions are taking shape in the City Centre and North East districts. In January, the unadjusted benchmark price was $750,800, slightly higher than last month and seven% higher than last January. On a seasonally adjusted basis, prices have remained relatively stable since the second half of last year.

Semi-Detached - Like other property types, gains in new listings relative to sales helped support some gains in inventory levels. While the semi-detached sector represents a relatively small share of activity in our market, sales in January did improve over last year, keeping the months of supply just below two months. Within the city, there is some significant variation, as the City Centre, North East, and West districts are all reporting near or above three months of supply, while all other districts have less than two months of supply. 

The unadjusted benchmark price in January was $673,600, slightly lower than last month but over 8% higher than levels reported last January. The districts with higher months of supply also reported some modest monthly price declines, offsetting stable to modest gains in the North, North West, South, South East, and East districts.

Row - In 2024, there were 4,647 row home sales, a gain of over 2% compared to last year and the second-highest total on record. The growth in sales was possible thanks to the 18% gain in new listings, most of which occurred for homes priced above $400,000—the gains in new listings relative to sales supported inventory growth in 2024.

By the year's end, supply improvements helped take the pressure off home prices. However, the annual benchmark price rose by 14% as conditions favoured the seller throughout the year. Prices rose across all districts in the city, with the gains ranging from a low of 12% in the City Centre to over 20% in the most affordable districts in the North East and East.

 Apartment Condominium - January reported a boost in new listings compared to sales activity. This caused inventory levels to rise to 589 units, more than double the near-record low levels reported last January. The recent rise in new listings has helped bring inventories to levels that are more consistent with long-term trends. At the same time, the months of supply also improved, pushing above two months, a trend that started to play out over the second half of last year. 

 Improving supply relative to sales has taken some of the pressure off home prices, but not consistently across the city. Citywide, the unadjusted benchmark price was $444.900, slightly lower than last month and nearly %% higher than last year. While prices are higher than last year across all districts, the largest monthly adjustment occurred in the North East district.