As we move into 2025, several key market trend are shaping the Canadian housing market. From ongoing population growth to evolving economic conditions, these shifts are having a significant impact on real estate, mortgages, and investment opportunities. Here’s a closer look at what’s driving the market this March and beyond.
Canadian Population Growth & Immigration
Canada’s population growth is thriving, with permanent resident admissions continuing to run near record levels through Q4 2024. This continued rise in immigration is expected to keep housing demand high throughout 2025. With an increasing number of people settling in Canada, there’s greater competition for homes, which continues to drive real estate prices and mortgage solutions.
For those looking to buy or invest in real estate, understanding these demographic shifts is critical in anticipating future market demand and securing your place in the housing market.
Borrower Resilience: Canadians Are Holding Strong
Despite economic uncertainty, Canadian borrowers are proving resilient. The number of Canadians behind on mortgage payments is sitting at just 0.21%, which is a remarkably low number—only 21 out of every 10,000 households. This reflects the strength of the Canadian mortgage market and the ability of homeowners to manage financial obligations, even in tough times.
It’s clear that Canadian homeowners are taking financial responsibility seriously, which is an encouraging sign for the overall stability of the housing market.
Slim Pickings for Future Buyers: Construction at Record Lows
The construction of new condos and single-family homes has hit its lowest point since 2009, signaling a potential supply shortage on the horizon. This reduction in new home construction could lead to limited housing options in the future, creating more competition for the homes that are available.
As a result, buyers may face higher prices and fewer choices as the market continues to tighten. If you’ve been considering buying, it might be wise to act sooner rather than later.
A Great Time to Be a Buyer
For prospective buyers, there’s good news. In January 2025, a sharp rise in new listings across Canada was recorded. Additionally, the sales-to-new-listings ratio is at a near-decade low, which is a favorable signal for buyers looking to find good deals in a competitive market. This market trend means that buyers have more options to choose from than in previous months, making it an excellent time to secure a property before the market shifts again.
If you’ve been on the fence, now could be the perfect time to act.
Money Supply Rising: What It Means for Real Estate
Canada’s money supply is on the rise again, with M2 up 2.7% over the past three months—the fastest increase since 2021. As more money enters the economy, it tends to push up the prices of assets, including real estate. This means that if you’re looking to buy, now might be the right time to lock in favorable mortgage rates before the market heats up even further.
With liquidity growing, it’s essential to stay ahead of potential price increases and secure your financing sooner rather than later.
U.S. Tariff Update & How a HELOC Can Help
Beyond local factors, the U.S. has introduced new tariffs that could affect Canadian industries, particularly in construction and materials. These tariffs are expected to drive up costs, which could, in turn, impact home prices and renovation budgets.
For those feeling the pressure of rising costs, a Home Equity Line of Credit (HELOC) could be a valuable tool. HELOCs allow homeowners to tap into their home’s equity, offering low-interest borrowing that can help with home improvements, managing expenses, or consolidating debt. In times of rising costs, a HELOC provides flexibility to address financial challenges.
Conclusion: Navigating a Changing Market Trend
As 2025 unfolds, the Canadian housing market trend is shaped by increasing population growth, strong borrower resilience, and a tightening housing supply. These factors—along with rising money supply and new tariffs—create both challenges and opportunities in the real estate sector.
Whether you’re looking to buy, sell, or invest, it’s important to stay informed and make strategic decisions. Mortgage Mingle is here to help you navigate these shifts and ensure you have the right mortgage solutions for your goals.
Stay tuned for more updates as we continue to track the latest market trend and provide insights on the Canadian housing market.
Sources
