URBANTEAMHOME
URBANTEAMHOME
Blog Article
As of February 2025, the Canadian real estate market has experienced notable shifts across various regions:
Home Sales: In February, Canadian home sales decreased by 9.8% compared to January, marking the most significant decline since May 2022. Annually, sales were down 10.4%. This downturn is largely attributed to economic uncertainties stemming from a burgeoning trade conflict, which has deterred potential buyers.
Home Prices: The MLS® Home Price Index saw a monthly decline of 0.8% and an annual decrease of 1%. The national average sale price dropped by 3.3% year-over-year.
Regional Insights:
Ontario: The average home price stood at $834,050, showing a modest 1.5% increase year-over-year. Home sales in January totaled 8,912, reflecting a 10.1% annual decrease. Notably, active listings reached 44,913—the highest January figure in over a decade.
Greater Toronto Area (GTA): The average selling price was $1,040,994 in January, a 1.4% increase from the previous year but a 2.5% decrease from the prior month. Home sales numbered 3,847, down 8.9% year-over-year.
British Columbia: The province experienced a significant 6.3% month-over-month drop in average home prices, settling at $949,560 in January. This represents a slight annual decline of 0.9%.
The Bank of copyright is anticipated to implement its seventh consecutive interest rate cut, reducing the overnight rate to 2.75%. This decision is driven by trade policy uncertainties and escalating economic tensions with the United States, including recent tariffs on Canadian imports.
The copyright Mortgage and Housing Corporation (CMHC) forecasts that home prices will predominantly rise in 2025 and 2026, propelled by strong demand and limited supply. However, affordability challenges persist, particularly in major urban centers.
In summary, the Canadian real estate market is navigating a period of adjustment, influenced by economic uncertainties and regional disparities. Prospective buyers and investors are advised to stay informed about evolving market conditions and economic policies
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