Neha Bhaskar - Real Estate Agent

Housing prices have shown resilience over the past two years, despite higher interest rates and economic uncertainty.

Higher tariffs are expected to increase construction prices and housing replacement costs, which will further support home prices.

Additionally, any further reduction in interest rates will ease the burden for homeowners with mortgages over $1 million who are set to renew in 2025.

Wondering what these price trends mean for your property? Let’s chat.

Supply will be an important variable to watch closely this year.

While the surge in new listings in January was partly the result of a very large number of homes being put back on the market after being pulled late last year, roughly 400K in the mortgages in the GTA are up for renewal in Canada this year at significantly higher interest rates than originally contracted, which will cause more listings to occur.

While the economic and political fog will likely linger for some time, buyers should begin to re-enter the market during the spring as interest rates continue to fall, helping stabilize the market.

The Bank of Canada cut interest rates by a further 25 basis points on January 29 to 3.0% — the sixth consecutive cut — and 5-year bond yields have dropped below 3%, which is starting to bring fixed-rate mortgages below 4%.

The Bank of Canada mentioned that a trade war with the U.S. has the potential to bring significant economic damage, requiring lower interest rates to help stabilize the economy.

Looking to Sell? Let’s discuss how you can position yourself in this changing market.

The GTA housing market continues to rebound, with prices rising for the second consecutive month in November.

Lower interest rates are enticing buyers back into the market, supporting price growth across most segments.

While affordability has improved compared to recent years, upcoming changes to mortgage rules may drive prices higher in the months ahead!

Now might be the perfect time to make your move in the GTA housing market. Contact today to discuss your real estate goals!