Many Canadians have long faced challenges in achieving homeownership in major housing markets across the country. However, the situation seems to be evolving, especially in cities like Vancouver, Toronto, and their surrounding areas, where prices are relatively stable, and interest rates remain low.
Toronto real estate agent Heather Hadden noted a positive shift, observing an increasing interest from first-time buyers in the market. She described the current conditions as favorable for buyers, particularly in the condo segment, due to abundant supply and reduced urgency to make quick decisions.
Hadden emphasized the current buyer-friendly environment, highlighting the flexibility for negotiating deals, ample property choices, and improved affordability compared to previous years.
She mentioned the significant improvement in affordability, citing examples of one-bedroom condos priced under $600,000 in Toronto and the option to purchase a three-bedroom home within an hour’s distance from the city.
Amidst the changing market dynamics, there is a debate on whether it is a critical time to enter the market. Experts like Fred Blondeau, the Montreal-based managing director of Canadian research at Green Street, believe that buyers should not rush their decisions, as there is no immediate urgency to act.
Blondeau expressed optimism about the market’s stability, suggesting that the recent resurgence in homebuying activity reflects a positive turning point rather than a fleeting opportunity.
Lower prices and cooling interest rates have sparked interest among first-time home buyers in certain Canadian regions. CBC’s Ashley Fraser delves into the current real estate market trends and factors to consider before making a purchase.
Market Trends and Forecast
According to the Canadian Real Estate Association (CREA), the average home price in Canada decreased by almost $150,000 from February 2022 to July of the current year.
The housing market saw a resurgence last fall following a period of reduced interest rates. By the end of 2024, the key interest rate had dropped to 3.25%, down from five per cent, and now stands at 2.75%.
Despite some hesitancy among homebuyers due to external factors like the trade war with the United States,
