Canada’s real estate market is expected to see rising prices in 2025, thanks to strong demand and limited housing inventory.

Re/Max Canada’s 2025 Housing Market Outlook Report predicts that interest rate cuts and growing consumer confidence will likely spur more activity in the market. However, with demand outpacing supply, the national average residential sale price is expected to rise by about 5%.

The report surveyed 37 regions across Canada and found that sales activity is expected to increase in 33 of these areas, with some regions seeing growth of up to 25%.

Re/Max agents noted that first-time homebuyers, who are driving market activity in 81% of the surveyed regions, are likely to benefit the most from these market conditions.

Regional Insights: Seller’s Market Ahead

The report predicts that 44% of Canadian housing markets will shift in favor of sellers in 2025. This trend will be especially strong in Western Canada, where residential prices are expected to rise by 3% to 10%. For example:

• Edmonton: Prices are expected to increase by 10%, driven by homebuyers from Calgary looking for more affordable options in Edmonton.
• Greater Vancouver Area: Prices are projected to rise by 7%, with sales growth of up to 20%.
• Ontario: The province’s largest housing market is also expected to see price increases, ranging from a slight 0.1% in Toronto to 10% in Simcoe County.

In Ontario’s urban centers, like Toronto, Mississauga, and Kitchener-Waterloo, market conditions are expected to remain balanced. However, areas like Sudbury and York Region are likely to shift in favor of sellers.

In Atlantic Canada, price increases are expected in every surveyed market, with notable rises of 8% in Truro & Colchester, Nova Scotia, and St. John’s, Newfoundland.

Key Trends for 2025: Inventory, Buyer Demographics, and Affordability

Re/Max brokers and agents highlighted several key demographics shaping the market in 2025, including first-time homebuyers, move-up buyers, and downsizing retirees. There’s strong demand for smaller, affordable homes like townhomes and bungalows, while move-up buyers are seeking larger properties.

Affordability and inventory will continue to be challenges in many regions, especially in competitive markets like Toronto and Vancouver.