The housing market can feel like a roller-coaster ride. As interest rates, inflation, and other economic factors rise and fall, it’s natural to feel uncertain about buying or selling a home. However, whether the economy is soaring or struggling, real estate remains one of the most reliable ways to build wealth. Here’s why making a move in the housing market—no matter the state of the economy—can be a smart decision.

1. Real Estate is a Long-Term Investment

While short-term fluctuations in the market can seem concerning, real estate has consistently proven itself as a long-term investment. Over time, homes tend to appreciate in value, which helps offset any temporary losses caused by economic downturns. If you hold on to your property for several years, the chances are that you will see your investment grow, regardless of market volatility.

2. Market Conditions Always Favour Someone

No matter what direction the economy is moving, there’s always an opportunity for either buyers or sellers to benefit. When the economy is struggling, buyers can often find homes at lower prices, especially when interest rates dip, making mortgage payments more affordable. Conversely, when the economy is booming, sellers might see higher prices for their properties, taking advantage of increased demand.

For example, during a seller’s market, where there are fewer homes for sale than buyers, homeowners can sell quickly and for top dollar. In a buyer’s market, where there are more homes than buyers, those purchasing homes can negotiate better deals. In either case, there’s a way to make the market work in your favour.

3. Homeownership Provides Stability

In uncertain times, owning a home offers a sense of security that renting cannot. With a fixed-rate mortgage, you have a predictable monthly payment and the peace of mind that comes with owning an asset. As rents rise due to inflation, homeowners can lock in a steady mortgage payment for the duration of their loan. Additionally, homeownership often allows you to accumulate equity over time, which provides financial stability and potential for future opportunities.

4. The Tax Benefits of Homeownership

Owning a home comes with several tax advantages that renters simply don’t have. Mortgage interest, property taxes, and even some home improvement costs are tax-deductible in many cases. These tax benefits can help you save money and improve your overall financial situation, making homeownership even more appealing, even in less-than-ideal economic times.

5. Building Equity Through Payments

Every mortgage payment you make goes toward building equity in your property. This is money you own outright. On the other hand, when you rent, your monthly payments help someone else build wealth. Buying a home allows you to use your payments to invest in yourself and your future. Even if home prices fluctuate in the short term, over time you’ll build significant wealth simply by owning your home.

6. The Ability to Personalize Your Property

When you own a home, you have the freedom to make it your own. Whether it’s painting walls, adding a garden, or remodelling the kitchen, homeownership gives you the flexibility to create the space you’ve always dreamed of. In contrast, renting comes with limitations, as landlords often restrict customisation.

This personal investment in your home not only makes it more enjoyable to live in, but it can also increase its value. Smart renovations can lead to higher resale prices, giving you a return on your investment when you decide to sell.

7. Market Timing Can Be Overrated

Many buyers and sellers get caught up in trying to "time" the market, waiting for the perfect economic conditions. In reality, the ideal time to buy or sell a home is when it’s the right decision for you personally. For buyers, this might mean securing a property in a neighbourhood that suits your lifestyle, or finding a house that meets your needs regardless of current trends. For sellers, this could mean capitalising on your home's equity to move up, downsize, or change locations.

8. The Power of Interest Rates

Interest rates can play a huge role in your home-buying decision, but they should be viewed as just one factor among many. Even if rates are higher, buying a home may still be advantageous in the long run compared to continuing to rent or waiting for a perfect economic moment that may never come. Fixed-rate mortgages lock in your interest rate for the life of the loan, ensuring stability for your monthly payments.

While it's true that lower interest rates make for more affordable loans, higher rates can still make sense depending on your financial situation and the value you place on ownership. When you're buying a home for the long term, the interest rate fluctuations become less important over time.

Conclusion: Real Estate is Always a Smart Investment

No matter what the economy is doing, the decision to buy or sell a home is a personal one, based on your needs, goals, and financial situation. Real estate is a tangible, long-term asset that will continue to be valuable through all economic cycles. With the right approach, you can leverage the benefits of owning or selling a home to enhance your life and your financial future.

If you're ready to explore your options, now is always a good time to reach out to a professional realtor who can guide you through the process and help you navigate the current market conditions. Whether you're buying, selling, or just starting to consider your options, a knowledgeable realtor can help you make the most of any economic environment.

Let’s start the conversation today and unlock the opportunities available in today’s real estate market!

The real estate market is always evolving, but there are specific times when conditions align in favour of both buyers and sellers. And believe it or not, now might just be that perfect moment. Whether you’re looking to sell your home or purchase your dream house, there are plenty of reasons why the present market makes it an ideal time to take the plunge. Let’s explore why NOW could be the best time for you to make your move in real estate.

1. Lower Interest Rates Are Back (for Now)

After a period of high interest rates, we’ve seen a decline in borrowing costs, making it easier for buyers to secure favourable mortgage terms. With lower rates, monthly payments are more affordable, opening up possibilities for a broader pool of buyers. This can translate into more potential buyers for sellers, creating a competitive advantage.

For buyers, lower rates mean more buying power. You can afford a larger home or a better location while keeping your monthly mortgage payments manageable. Sellers, on the other hand, are benefiting from motivated buyers who are eager to lock in these rates before they rise again.

2. High Buyer Demand, Low Inventory

In many areas, the market is still facing low inventory, and this presents a unique opportunity for sellers. Homes that are priced well and in good condition are still seeing quick offers, sometimes even multiple offers in a bidding war. If your home is ready to sell, it could easily attract strong interest.

For buyers, this might sound intimidating, but the reality is that while inventory might be low, there are still plenty of opportunities to find the right home with the help of an experienced agent. Plus, sellers are often more motivated to negotiate when they know they’re getting top dollar.

3. Equity Growth

Many homeowners who purchased in the past few years are sitting on significant home equity, thanks to the consistent appreciation of home values. This newfound equity can be a game-changer for sellers, giving them the financial flexibility to move to a new home without the stress of a hefty down payment.

For buyers, this is an excellent opportunity to work with sellers who may be more willing to negotiate terms. Sellers who have built up equity might also be more inclined to work with buyers who need some assistance, whether it's through seller concessions or other incentives.

4. A More Balanced Market

While the market may have been competitive with limited inventory in previous years, many experts predict that the market is beginning to balance out. For both buyers and sellers, this creates a less frantic environment and more room for thoughtful decisions.

As a buyer, this can mean less pressure to make hasty decisions and more time to find a property that fits your needs and budget. For sellers, a more balanced market doesn’t necessarily mean the bidding wars are over, but it can provide more realistic expectations and a smoother transaction process.

5. Your Home's Value is Likely to Be at its Peak

If you’ve been holding onto your home and have seen its value increase over the years, now could be the time to capitalise on that appreciation. Home prices have steadily risen in many markets, and while values may stabilise or adjust, the current market could still be one of the best times to sell if you want top dollar.

For buyers, it’s important to understand that while home prices are competitive, they may not continue to climb indefinitely. Getting into the market now could allow you to benefit from future appreciation, particularly in areas with strong growth potential.

6. The Flexibility of Remote Work

The rise of remote work continues to reshape the real estate market. Many people are seeking homes that accommodate their new work-from-home lifestyle, including extra space for home offices or better access to outdoor activities. This demand is creating opportunities for both buyers and sellers in different markets.

If you’re a seller, you can appeal to a larger buyer pool by highlighting the features that make your home perfect for remote work. For buyers, you now have more flexibility to search for homes in suburban or rural areas, where you might get more for your money compared to an urban setting.

7. Tax Benefits and Long-Term Investment Potential

Whether you're buying or selling, there are potential tax benefits that could make the timing even better. For sellers, capital gains tax exemptions on the sale of your primary residence could mean more money in your pocket after the transaction. For buyers, owning a home can offer valuable tax deductions, such as property tax and mortgage interest deductions.

Additionally, real estate continues to be one of the best long-term investments, especially in a market that has proven resilient over time. If you’re buying, this could be an opportunity to secure a property that will appreciate in value, offering you financial security for years to come.

8. Less Seasonal Competition

While spring and summer are traditionally seen as prime times for real estate transactions, fewer people may be looking to buy or sell in the fall and winter months, which can work in your favour. With less competition, sellers can often stand out more easily, and buyers may have more negotiating power.

In today’s market, however, the usual seasonal patterns are shifting, and some buyers are opting to get ahead of the competition by making a move now. Plus, fewer sellers may be listing, but that means serious buyers have the chance to negotiate with fewer offers flooding in.

9. Personal Circumstances Align

For many people, the decision to buy or sell a home is deeply personal. Whether you're looking for more space, downsizing, or moving to a new city, timing your move to match personal milestones is often just as important as the market conditions. If your personal situation aligns with the market trends, there may be no better time to act than right now.

In Conclusion

While no one can predict the future of the real estate market with 100% certainty, the current landscape is undeniably favourable for both buyers and sellers. With lower interest rates, rising home equity, and high buyer demand, now could be the perfect time to make your move. Whether you're looking to sell your home for a great price or purchase a property with the potential for long-term growth, today’s market offers the right mix of conditions to make it happen.

Don’t wait for the "perfect time" — the best time to sell or buy is when the conditions are right for you. And right now, those conditions are lining up perfectly.

If you’re in the market for a new home in Canada, the recent interest rate cut by the Bank of Canada might be making headlines. But the ongoing trade war with the U.S. is leaving many Canadians uncertain about what’s to come, including the health of the housing market. The Bank of Canada’s decision to lower its key interest rate to 2.75% could have a big impact on mortgage payments, but is it enough to spark confidence in today’s housing landscape?

Why Did the Bank of Canada Cut Rates Again?

On March 12, 2025, the Bank of Canada made its seventh consecutive interest rate cut, citing the growing "pervasive uncertainty" caused by the U.S.-imposed trade tariffs. Bank of Canada Governor Tiff Macklem noted that the unpredictability surrounding these tariffs is reducing consumer confidence, leading Canadians to cut back on spending and businesses to scale back on hiring and investments.

In a time when many Canadians are already feeling the pinch, the central bank’s decision to lower rates is seen as a response to help stimulate the economy. But will it be enough to shift the housing market?

The Effect of Lower Rates on the Housing Market

Typically, a rate cut in March would spark activity in the housing market, as spring is often a busy time for homebuyers. Lower mortgage rates make borrowing cheaper, which could encourage more Canadians to take the plunge into homeownership. However, experts are suggesting that the current economic environment is anything but typical.

Mortgage Expert Insights:

While lower rates should traditionally be good news for homebuyers, the uncertainty surrounding tariffs is dampening confidence. It’s hard to make big decisions when the economy is in a state of flux.

Even though homebuyers are seeing lower mortgage rates and an increase in available homes for sale, many are hesitant to make a move. With job security uncertain due to potential economic fallout from tariffs, it's difficult to commit to a mortgage when you don’t know what your financial future holds.

Some experts suggest that while a rate cut might slightly improve affordability, “it’s more likely that a chill will remain on the housing market until tariff fears dissipate for good.” The market is already facing increased inventory, and with recession fears looming, both buyers and sellers are on edge.

How Will This Impact Your Mortgage?

For those with a variable-rate mortgage, the Bank of Canada’s interest rate cut could offer some immediate relief. With the 25-basis point rate reduction, your mortgage rate will drop, which could lower monthly payments or reduce the portion that goes towards interest. For example, a Canadian homeowner with a 10% down payment on a $670,064 home could see their monthly mortgage payment drop by about $84—resulting in a $1,008 savings per year.

Though this reduction might provide a bit of breathing room for homeowners, it’s unlikely to spark a widespread buying spree. The uncertainty surrounding tariffs and the broader economic environment continues to hang over the housing market.

What’s Next? Further Rate Cuts on the Horizon

With the ongoing trade war and continued economic uncertainty, further rate cuts are expected. The Royal Bank of Canada (RBC) forecasts that the Bank of Canada will lower its interest rate further, down to 2.25%, by mid-year. Economists like Andrew DiCapua from the Canadian Chamber of Commerce predict that the rate could even drop to around 2% if tariff-related uncertainty continues.

This means that while homebuyers may benefit from lower rates in the short term, the broader economic situation still poses risks for the housing market in the long run. Canadians will likely see further rate cuts, but the looming question remains: Will these cuts be enough to stabilize the market or will the trade war continue to freeze consumer confidence?

In Conclusion: Navigating a Chilly Housing Market

The Bank of Canada’s rate cut is a double-edged sword for homebuyers. While it offers some relief for those with variable-rate mortgages, the lingering uncertainty from the U.S.-Canada trade war has put a chill on the housing market. Buyers and sellers alike are hesitant to make big decisions in the face of potential economic disruption.

If you’re thinking of buying a home, it’s crucial to keep an eye on the economic landscape and consult with mortgage experts to understand how any future rate cuts might affect your situation. As we move into the spring season, the housing market might warm up slightly, but only time will tell if it’s enough to overcome the uncertainty hanging over the economy.

Stay tuned for further updates as economists and the Bank of Canada continue to navigate these tumultuous times.

In recent months, Canada’s housing development industry has found itself at the mercy of global trade turbulence, with the uncertainty surrounding tariffs and trade policies threatening to slow new investments in the country’s housing market.

As the Trump administration’s fluctuating trade policies create an unpredictable environment, investor confidence has been shaken. President Trump’s repeated announcements and delays regarding steep tariffs on Canadian goods have made it harder for developers to plan and secure funding for new housing projects.

A Slower Market: Land Acquisitions and Housing Development

The ongoing global trade conflict has been blamed for a noticeable slowdown in land acquisitions and home resales. According to Colliers, a commercial real estate firm, there was a period of positive momentum towards the end of last year when land purchases and housing development were on the rise after a couple of years of low activity. However, that optimism has been fading, with investors becoming more cautious and pulling back from the market.

Steve Keyzer, an executive vice-president with Colliers Canada, noted that the uncertainty surrounding the trade war has eroded investor confidence. “If this goes on for a long time and tariffs do come into effect for the medium term, then we’re going to see less confidence in all aspects of investment in the economy, and definitely, housing will be affected,” he said.

In fact, land sales in Canada’s major regions saw a slight uptick in the last quarter of 2024, reaching $2.29 billion. But this is still well below the peak of $5.21 billion seen in the second quarter of 2022, highlighting how investor interest has cooled significantly. Meanwhile, sales in key Canadian cities like Toronto, Calgary, and Vancouver have dipped from February to March 2024, further reinforcing the impact of these uncertainties.

The Ripple Effect: Construction Costs, Supply Chains, and Buyer Confidence

The trade war isn’t the only challenge facing home builders. Rising construction costs, material shortages, and disruptions caused by the pandemic have already strained the housing market. These issues were compounded by rising interest rates, which made it harder for homebuyers to qualify for mortgages. In turn, the increased borrowing costs also impacted developers, further dampening investor interest in new housing projects.

As Shaun Hildebrand, president of Urbanation Inc., explains, “100 per cent this uncertainty around a trade war will impact new development.” The consequences are already evident in the resale market, as many potential buyers have pulled back, uncertain about future costs and the broader economic outlook.

Homebuilders have also struggled with the unknown effects of tariffs on construction materials and supply chains. The global trade war adds another layer of unpredictability, making it harder for developers to forecast costs and timelines. Mazyar Mortazavi, CEO of TAS, an Ontario-based home builder, pointed out that economic turmoil and tariff uncertainties make it more difficult to secure capital and provide investors with confidence in the stability of their projects. "Capital flows to where certainty lies," Mortazavi said.

A Shaky Future for Housing Investments

The uncertainty created by the tariff war is making it increasingly difficult for developers to secure funding for new projects. Mortazavi revealed that while TAS raised capital last year, it was far below the level they had historically achieved, both in terms of total funds and the speed at which they were able to raise it.

Furthermore, the potential for new tariffs on Canadian goods continues to cause disruptions. In early March, President Trump announced a doubling of tariffs on Canadian steel and aluminum, which would increase to 50 per cent. Though the tariffs were temporarily suspended after negotiations with Ontario, the lack of clarity regarding trade policies makes it hard for businesses to plan for the future.

Meanwhile, Canada has retaliated with its own tariffs, imposing them on $30 billion worth of U.S. goods, and China has introduced new taxes on Canadian agricultural products. With this continuous back-and-forth, the broader implications for housing development remain unclear.

Navigating Uncertainty

For home builders, the uncertainty around tariffs and trade policy disruptions has become a significant barrier to new development in Canada. With rising costs, fluctuating trade policies, and a lack of clarity, investor confidence is waning, and projects are being delayed or scaled back. As Ted Betts, a partner with Gowling WLG, explained, “The worst part is not even the tariff. It is the disruption and uncertainty. The uncertainty is what kills projects.”

Until there is greater stability in the global trade landscape, it seems likely that Canada’s housing market will face continued challenges, making it more difficult for developers to meet the growing demand for new homes.

The uncertainty surrounding U.S.-Canada trade relations is making waves across multiple sectors, with economists from Canada’s ‘Big Five’ banks warning of potential economic and housing market repercussions.

Tariff Concerns and Economic Uncertainty

After a month of back-and-forth rhetoric, U.S. President Donald Trump’s 25% tariff on Canadian imports is set to take effect on March 4. Additional tariffs on steel, aluminium, and possibly even lumber are also on the table, leaving many wondering how long this trade turbulence will last.

TD economist Rishi Sondhi highlights that the duration of these tariffs will significantly impact Canada’s economic trajectory. A prolonged trade war into 2026 could drag down growth, while a shorter, six-month disruption might allow the economy to rebound more quickly in 2025. Either way, these tariffs come at a challenging time, just as Canada’s economy had started showing signs of recovery.

Interest Rates: To Cut or Not to Cut?

The uncertainty surrounding trade policies has put pressure on the Bank of Canada’s decision-making. Initially, many economists predicted a rate cut in March to support economic growth. However, stronger-than-expected GDP data has complicated that outlook.

While some economists believe the central bank will hold rates steady at 3%, others argue that if a full-scale trade war erupts, rate cuts will become inevitable to counteract the economic strain. On the other hand, Scotiabank’s Derek Holt warns that retaliatory tariffs from Canada could lead to inflationary pressures, potentially forcing the Bank of Canada to reconsider rate hikes instead of cuts.

Housing Market at Risk

With interest rates in flux and economic uncertainty mounting, Canada’s housing market could face challenges. Scotiabank economist Patrick Perrier initially projected a healthy level of housing activity in 2025, driven by lower mortgage rates and moderate price growth. However, tariff concerns have disrupted that outlook.

According to the Canadian Real Estate Association (CREA), a dip in home sales at the end of January coincided with rising fears of U.S.-imposed tariffs. This uncertainty could continue to weigh on housing demand, making it difficult for potential buyers to commit to purchases.

RBC economists further warn that economic turbulence from tariffs could erode consumer confidence, a key driver of housing market stability. With potential job losses and slower hiring, purchasing power could decline, putting downward pressure on home prices and sales.

Labour Market Implications

A weakening housing market often signals broader economic challenges, particularly in employment. While Canada saw a slight rise in employment in January, the unemployment rate remains nearly 1% higher than it was a year ago. RBC economists note that while tariff uncertainty alone won’t necessarily trigger layoffs, it could slow hiring, as already reflected in declining job postings.

With Statistics Canada’s latest labour market report set for release on March 7, economists from CIBC anticipate further signs of slowing job growth and a rising unemployment rate, adding to concerns about the country’s economic trajectory.

Looking Ahead

While there’s hope that Canada might avoid the most severe tariff measures, uncertainty remains a key challenge. If tariffs are fully implemented, housing market conditions could weaken, hiring could slow, and interest rate decisions could become even more complicated.

For now, all eyes are on how Canada navigates these potential economic headwinds—and whether policymakers can provide stability in an increasingly unpredictable landscape.

Spring is widely regarded as the best time to sell a home, and for good reason. As the weather warms up and the days grow longer, the real estate market comes to life, with more buyers actively searching for their next home. If you’re considering selling, spring offers the perfect opportunity to maximize your sale price, attract serious buyers, and ensure a smooth selling process. Here’s why spring is the ideal season to list your home.

1. Increased Buyer Demand

Spring typically sees the highest number of buyers entering the market. Many people have spent the winter browsing listings online, waiting for better weather to start their home search in earnest. Families with children often prefer to move in spring or early summer to minimize disruptions to the school year, making this a key time for relocation. With more buyers actively looking, sellers benefit from increased interest and a higher likelihood of receiving multiple offers.

Homes Show Better in Spring

Curb appeal plays a huge role in attracting buyers, and spring is when homes truly shine. Gardens come to life, lawns turn green, and natural light enhances interior spaces, making homes look more inviting in listing photos and during showings. In contrast, winter listings can struggle with dreary weather, barren landscaping, and shorter daylight hours. A well-presented home in spring is far more appealing to buyers, increasing its chances of selling quickly and at a great price.

Longer Days Mean More Showings

With daylight saving time in effect, evenings stay brighter for longer, giving buyers more flexibility to view homes after work. This means greater exposure for your property and a higher chance of attracting serious buyers. More available showing times can also translate into faster offers, helping sellers avoid long, drawn-out negotiations.

4. Higher Sale Prices

One of the biggest advantages of selling in spring is the potential for a higher sale price. When multiple buyers are competing for the same property, bidding wars become more common, driving up final sale prices. This demand often allows sellers to be more strategic in pricing their homes, ultimately maximizing their return on investment.

Faster and Smoother Transactions

Homes listed in spring tend to sell more quickly than those in other seasons. With more buyers actively searching and mortgage lenders processing a high volume of transactions, the market moves efficiently. A well-timed listing can mean fewer days on the market and a streamlined closing process, reducing stress for sellers who want to move on to their next home.

Favourable Market Conditions

Spring often brings a balanced market where both buyers and sellers have opportunities. While there are typically more homes listed during this season, the high demand ensures that well-priced, well-presented properties attract serious attention. Sellers who take the time to prepare their homes properly can position themselves for a successful sale in a competitive market.

Easier Moving Conditions

Beyond the sale itself, spring is also an easier time for moving. Milder temperatures and longer daylight hours make the moving process more manageable compared to winter’s icy roads and unpredictable weather. Plus, moving in spring allows families to settle into their new home before summer vacations and the start of a new school year.

Thinking About Selling This Spring?

If you’re considering listing your home, now is the time to start preparing. From staging tips to pricing strategies, working with an experienced real estate professional can help you maximize your home’s value and attract the right buyers.

Want to take advantage of the busy spring market? Contact me today for a free home evaluation and personalized selling strategy!

Ontario is experiencing a troubling rise in mortgage delinquencies, with missed payments reaching levels significantly higher than pre-pandemic figures. According to Equifax Canada’s Q4 2024 Market Pulse Consumer Credit Trends Report, over 11,000 Ontario mortgages missed a payment in the last quarter of 2024—a nearly threefold increase from 2022.

The Growing Divide: Financial Stability vs. Distress

While some Canadians are benefiting from lower interest rates, others are struggling under mounting debt. The report, titled Stable versus Struggling: Canada’s Financial Divide Widens, highlights that provinces like Ontario and British Columbia—where the cost of living is high—are facing the most financial strain. Younger and lower-income individuals are bearing the brunt of this pressure, with many falling behind on their financial obligations.

Rebecca Oakes, Vice-President of Advanced Analytics at Equifax Canada, explains that homeowners in Ontario are facing increased financial stress, particularly those with lower savings buffers. Meanwhile, renters and non-homeowners—especially young and low-income individuals—are also struggling with growing financial burdens.

Mortgage Delinquencies Skyrocket in Ontario

The report reveals alarming statistics:

• Ontario mortgage delinquencies were over 50% higher than pre-pandemic levels in Q4 2024.

• Over 11,000 mortgages in the province missed a payment—almost three times the number seen in 2022.

• The 90+ day mortgage balance delinquency rate surged 90.2% year-over-year to 0.22%.

• The 90+ day non-mortgage balance delinquency rate jumped 46.1% year-over-year.

By comparison, British Columbia saw a 37.7% increase in mortgage delinquencies, Quebec 41.2%, and the Atlantic provinces 15.7%. Other regions like Alberta (3.6%) and the Prairies (0.6%) experienced more stable delinquency rates.

Interest Rate Pressures and Renewals in 2025

One of the major concerns for homeowners is the ongoing pressure of higher interest rates. While rates have begun to drop, they remain significantly higher than the ultra-low rates many homeowners secured before or during the pandemic. This disparity—often 100 to 200 basis points—will cause financial strain for those renewing their mortgages in 2025.

An estimated one million mortgage-holders will see their terms end this year, facing much higher interest rates. In Q4 2024 alone, one in four mortgage-holders saw their monthly payments increase by over $150 upon renewal.

Although mortgage stress tests aim to ensure borrowers can withstand rate increases, many homeowners are now dealing with the added burden of rising living costs. The combination of higher mortgage payments and increased day-to-day expenses could push more borrowers into financial distress.

A Silver Lining? New Mortgage Activity and Potential Rate Cuts

Despite these challenges, there are some positive trends in the mortgage market:

• New mortgage originations rose 39% year-over-year in Q4 2024.

• First-time homebuyer activity increased 28.2% compared to the lows of Q4 2023.

• Average monthly mortgage payments dropped 7.9% (or $200) to $2,330.

However, first-time buyers are still paying 6.6% more than they were a year ago, highlighting the continued affordability struggles in Ontario.

External Economic Pressures: The Impact of U.S. Tariffs

Looking ahead, the Canadian economy could face additional challenges from potential U.S. tariffs. If imposed, these tariffs could slow economic growth, reduce investment, and lead to job losses. While the Bank of Canada might respond with further interest rate cuts to offset these effects, such a move would come in response to economic hardships that could negatively impact homeowners.

How Ontario Homeowners Can Prepare

With mortgage delinquencies on the rise, it’s crucial for homeowners to take proactive steps to safeguard their financial health:

• Review Your Budget: Factor in potential mortgage payment increases and identify areas to cut costs.

• Consider Early Renewal Options: Locking in a rate before further increases may help mitigate payment shocks.

• Build an Emergency Fund: A financial cushion can provide relief in case of unexpected expenses.

• Seek Professional Advice: Mortgage brokers and financial advisors can offer strategies tailored to your specific situation.

While Ontario’s real estate market remains active, the financial strain on many homeowners is real. Staying informed and preparing for potential rate hikes can help mitigate financial challenges in the months ahead.

A Tale of Two Markets: Toronto vs. The Rest of Ontario

One of the most notable trends is the divergence between Toronto and the rest of Ontario. While condominiums account for only 25% of property transfers across the province, they make up a substantial 60% in Toronto. This increase is partly driven by a surge in new condo units entering the market. In 2024, around 15,000 newly built condo units became available—78% more than in 2023—impacting the resale market and contributing to slower sales in that segment.

Multi-Property Owners Scale Back Investments

Multi-property owners (MPOs), once dominant in Ontario’s housing market, have reduced their purchasing activity since peaking in 2022. Although they still play a significant role, most MPOs own just two or three properties, indicating that individual investors, rather than large institutions, are the primary players. Notably, millennials now make up nearly 40% of MPOs, surpassing Gen Xers.

However, large-scale investors—those with portfolios of 11 or more properties—have seen their market share drop from 13% in April 2022 to just 7.2% today. This decline reflects efforts to downsize portfolios in response to higher interest rates and market uncertainties. Yet, well-funded investors are still active in Toronto, with 30% of MPO purchases made without a mortgage.

Recent Buyers Face Losses

The market correction has been particularly challenging for those who purchased properties at peak prices in 2022 and 2023. Among homes bought during this period and sold in 2024, one in four transactions resulted in a loss. The median loss across Ontario was approximately $45,000, rising to $56,000 in the Greater Toronto Area (GTA) and a steep $240,000 in Muskoka.

First-Time Buyers Are Getting Older

Homeowners Are Staying Put Longer

Ontario homeowners are holding onto their properties longer, with fewer moving from one primary residence to another. Between 2011 and 2024, the average holding period for condos increased from just under seven years to over eight years, while non-condo properties saw an increase from 11 years to 12.5 years. In Toronto, non-condo owners now hold their homes for nearly 18 years on average, up from 13.8 years in 2014.

Looking Ahead

With continued uncertainty around interest rates, economic conditions, and mortgage policies, Ontario’s housing market is likely to remain in flux. Whether you’re a first-time buyer, investor, or homeowner considering your next move, understanding these evolving trends can help you make informed decisions in today’s complex real estate landscape.

Canada's housing market experienced a slowdown in January as home sales dropped and new property listings surged. According to the Canadian Real Estate Association (CREA), economic uncertainty, particularly surrounding potential tariffs and trade tensions with the United States, played a key role in this shift.

Key Market Trends

• Sales Decline: National home sales fell by 3.3% from December to January.

• Listings Surge: Newly listed properties increased by 11%, the largest jump since the late 1980s, excluding pandemic-related fluctuations.

• Price Movement: The national average home price rose 1.1% year over year to $670,064. However, CREA’s Home Price Index remained relatively flat due to ongoing softness in Ontario and British Columbia.

The national inventory stood at 4.2 months at the end of January, indicating a balanced market, as defined by CREA’s range of 3.6 to 6.5 months. However, the sales-to-new listings ratio dropped to 49.3%, placing it at the lower end of the balanced range (45% to 65%).

Economic Outlook and Buyer Opportunities

The Bank of Canada’s recent interest rate cut—lowering its policy rate by 25 basis points to 3%—may encourage more buyers to enter the market. Analysts predict further rate reductions throughout the year, which, coupled with softening prices, could create favourable conditions for buyers.

CREA Chair James Mabey anticipates increased real estate activity in the spring but cautions that ongoing trade tensions could impact the market. “While uncertainty about the economy and jobs will no doubt keep some prospective buyers on the sidelines, a softer pricing environment alongside lower interest rates will be an opportunity for others,” Mabey stated.

Looking Ahead

As spring approaches, the Canadian real estate market is expected to see more activity, driven by seasonal trends and potential interest rate cuts. However, the lingering threat of a trade war and its broader economic effects will remain a key factor to watch. Buyers and sellers alike should stay informed and consider how these market dynamics may impact their decisions.

The Canadian housing market experienced a significant shift in January, with new property listings soaring while home sales took a hit. According to the Canadian Real Estate Association (CREA), uncertainty around U.S. tariffs and a potential trade war played a major role in softening sales activity.

Record-Breaking Increase in Listings

January saw an 11% month-over-month increase in newly listed properties—the largest seasonally adjusted jump in new supply on record dating back to the late 1980s. Typically, winter is a slower season for real estate, making this surge in listings even more unusual.

Meanwhile, national home sales declined by 3.3% compared to December. CREA’s senior economist, Shaun Cathcart, attributed this drop to uncertainty surrounding tariffs, stating, “The timing of that change in demand leaves little doubt as to the cause—uncertainty around tariffs.” This combination of increasing supply and softer demand has shifted market conditions, especially in British Columbia and Ontario.

Home Prices Hold Steady Despite Market Changes

Despite the shifts in supply and demand, home prices remained relatively stable. The non-seasonally adjusted national average home price rose 1.1% year-over-year to $670,064 in January. However, the National Composite MLS Home Price Index has remained largely unchanged over the past year due to ongoing market softness in Ontario and B.C.

While these two provinces continue to be the most expensive places to buy a home, their average residential prices declined in January. B.C. saw a 3.8% drop, while Ontario experienced a more significant 6.2% decrease. On the other hand, other regions showed positive price growth, with Quebec leading at a 7.3% increase. The Prairies saw modest gains, including 0.4% in Alberta, 0.7% in Saskatchewan, and 0.3% in Manitoba. The Atlantic provinces also saw some movement, with Newfoundland experiencing a notable 5.8% price increase.

What This Means for Buyers and Sellers

With a surge in new listings and a slowdown in sales, buyers may find more opportunities and negotiating power in the coming months. On the flip side, sellers may need to adjust expectations, particularly in softer markets like B.C. and Ontario.

As tariff uncertainties continue to loom, it remains to be seen how the market will react in the longer term. For now, those looking to buy or sell in 2025 should stay informed and work with real estate professionals to navigate the shifting landscape.

Canada's housing market kicked off 2025 with a positive sign, as the annual pace of housing starts rose by three per cent in January compared to December. According to the Canada Mortgage and Housing Corporation (CMHC), this increase was primarily driven by a surge in multi-unit construction projects in Québec and British Columbia.

A Promising Start to the Year

The CMHC reported a seasonally adjusted annual rate of 239,739 housing starts in January, up from 232,492 in December. The increase was fuelled by urban housing starts, which also grew by three per cent to reach 220,643 units.

A closer look at multi-unit urban starts, including apartments, condominiums, and townhouses, showed an impressive eight per cent rise. This growth was particularly strong in Montréal and Vancouver, where purpose-built rental projects contributed significantly to the upswing. Montréal alone experienced a staggering 112 per cent year-over-year increase in housing starts, while Vancouver saw a 37 per cent jump.

However, the picture was not uniformly positive across the country. Toronto saw a sharp decline, with housing starts plummeting by 41 per cent compared to January 2024. The drop was attributed to a slowdown in multi-unit construction in the city.

Meanwhile, rural housing starts were estimated at 19,096 units, contributing to the overall increase in new construction.

Long-Term Outlook and Trade Risks

Despite the positive momentum in January, CMHC cautioned that housing starts are expected to slow between 2025 and 2027. The primary reason for this projected decline is a decrease in condominium developments, as investor interest weakens and demand from young families stabilizes.

Adding to the uncertainty are foreign trade risks, particularly potential U.S. tariffs on Canadian goods. CMHC deputy chief economist Tania Bourassa-Ochoa highlighted that these risks pose "significant uncertainty for housing construction going forward."

The agency's latest market outlook suggests that while home sales and prices are expected to recover this year due to improved borrowing conditions, external factors could cloud the longer-term forecast. A potential trade war between Canada and the U.S. could slow economic growth and limit housing activity. If high tariffs were imposed, inflation could temporarily rise, prompting the Bank of Canada to lower interest rates in an effort to support the economy. However, this scenario could also prolong a housing market recovery, leading to delayed home purchases and fewer housing starts overall.

What This Means for Buyers and Builders

For prospective homebuyers, the early-year increase in housing starts could signal more supply coming to market, potentially easing some affordability pressures. However, ongoing trade risks and potential economic slowdowns could impact borrowing costs and market confidence in the long run.

For developers, the current surge in multi-unit construction—especially in cities like Montréal and Vancouver—reflects strong demand for rental housing. But the broader economic uncertainties mean that builders should keep a close eye on trade policies and market shifts that could influence future construction activity.

Conclusion

While January's rise in housing starts is an encouraging sign, the market's trajectory remains uncertain. As economic conditions evolve, particularly in relation to trade agreements and interest rates, both buyers and builders will need to stay informed and adaptable. The coming months will be crucial in determining whether this positive trend can be sustained or if external pressures will slow the pace of new home construction.

With much of Ontario waking up to a fresh blanket of snow, many residents will be reaching for their shovels to clear sidewalks and driveways. But if you’re renting your home, you might be wondering: Is snow removal your responsibility or your landlord’s?

The $500 Question: Who Has to Shovel?

Failing to clear snow outside your home can result in fines, but responsibility for snow removal depends on the lease agreement and Ontario’s Residential Tenancies Act (RTA). According to Section 20(1) of the RTA, landlords must maintain rental properties in a good state of repair and comply with safety and maintenance standards. This has been interpreted by courts to include snow removal for common areas.

What If Your Lease Says You’re Responsible?

Some lease agreements state that snow removal is the tenant’s responsibility. However, unless the snow-covered areas are exclusively used by the tenant, such clauses are generally unenforceable. If a landlord wants to transfer responsibility for clearing exterior common areas to a tenant, it must be done through a separate contract, much like hiring a third party for maintenance.

This was highlighted in the 2009 Ontario court case Montgomery v. Van. A tenant sued after slipping near her basement apartment. While her lease required her to clear her walkway, the court ruled that snow removal responsibility must be assigned through a separate agreement, with clear terms such as removal timelines, equipment provisions, and potential rent reductions for the added labour.

Snow Removal Rules in Toronto

In Toronto, residents must clear snow within 12 hours after a snowfall ends if accumulation is less than 2 cm. If the accumulation exceeds 2 cm, the city’s snow removal services will handle clearing major roads and sidewalks, but property owners are still responsible for ensuring their own walkways and driveways are safe and accessible. Failing to do so could result in a fine of $500, plus a $115 surcharge, for a total of $615.

Bottom Line

If you’re a tenant, check your lease agreement—but also remember that unless you’ve signed a separate contract agreeing to handle snow removal for common areas, it’s likely your landlord’s responsibility. If you’re a landlord, ensure compliance with local snow removal bylaws to avoid fines and potential legal issues.

Stay safe, and happy shovelling!