Canadian housing market to see price rise in 2025

The housing market in Canada which, like the Nigerian, has been embroiled in crisis, is projected to see stability and about 6 percent price rise in this new year.

Analysts see this as a piece of good news for Nigerians and other immigrants in the country who have been victims of the country’s housing crisis that has pushed many of them to find homes in odd places including streets and cemeteries.

The analysts note that even as dire as the economic situation in Nigeria is at the moment, not even dollar-a-day Nigerians at home are living in the kind of places some Nigerians find as homes, all in the quest for ‘better’ living conditions and jobs abroad.

The streets of Canada and, in extreme cases, the cemetery, have become destinations for immigrants and refugees and it is reported that several immigrants, running into tens of thousands, are now pitching their tents in these places as their homes.

According to reports, in Quebec, one of the country’s largest cities, one in two homeless people can be located in rural areas in odd places. This is explained by Julie Bourdon, the Mayor of Granby, who noted that, “visible homelessness did not exist three years ago in Granby,” adding however that “rents are very high now compared to two years ago.”

It is expected, therefore, that with this projection which is based on a local market survey by Royal LePage the rent crisis will ease. The expected stability and price rise are to be driven by declining interest rates and new lending rules that will bring buyers back to the market.

Buyers coming back to the market means more houses will be available for rent by immigrants and natives alike while more developers would be encouraged to move to the site and deliver more houses for the market.

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The new mortgage rules which took effect December 15, 2024, aim to provide greater access to housing for first-time buyers and those purchasing new construction homes. These changes include eligibility for 30-year amortizations on insured mortgages and an increase in the mortgage insurance cap from $1-million to $1.5-million.

“First-time buyers will be the primary beneficiaries of these initiatives, as their ability to borrow more for less with a smaller down payment will help bring them closer to their first home purchase,” Phil Soper, president and CEO of Royal LePage, said. “We believe the return of buyers to the market will encourage builders and trigger a wave of new supply, which is very much needed”, Soper added.

The expected market stability will, however, come with a house price rise. Royal LePage predicts that the average price of a home in Canada will rise by 6 percent year-over-year to $856,692 in the fourth quarter of 2025, falling in line with long-term trends.

“Single-family detached homes are expected to see a 7-percent price increase, reaching a median value of $900,833, while condo prices are forecast to grow by 3.5 percent, reaching $605,993,” the company said.

The editorial team of a real estate magazine (REM) in the country quotes Soper as saying, “the backlog of willing and able buyers continues to grow, and upcoming changes to mortgage lending rules will further enhance Canadians’ borrowing power.”

According to Soper, the Bank of Canada’s recent monetary policy shift from “inflation fighter” to “economy booster” has been a key driver of this optimism. “We saw a marked increase in market activity at the start of the fourth quarter, following the Bank of Canada’s 50-basis-point rate cut,” he noted, adding that buyers, for the most part, believe home prices have bottomed out.

“The prediction sees price growth across all major Canadian markets, with Quebec City leading the way at an expected 11 percent increase in the price. Edmonton and Regina follow with projected gains of 9 percent each,” the REM editorial team noted.

Soper explained that “over the past several months, supply has been building in the Toronto and Vancouver real estate markets as sellers responded to early interest rate cuts by listing their homes. However, with home prices in these cities remaining high, many sidelined buyers continued to wait for more favourable borrowing conditions.”