Current Market Conditions

As we approach the Bank of Canada’s next interest rate announcement on March 12th, market participants are eagerly awaiting signs of potential policy shifts. Inflation remains relatively low, which sets the stage for either a continued pause or even a possible rate cut. Yet with external economic factors such as tariffs and new immigration policies, it will take time to impact the market and their effects will only become clearer in the coming months. Homebuyers, sellers, and investors should closely monitor these developments, as they will directly influence borrowing costs and overall market dynamics. The market has seen an increase in transactions compared to the previous month, with properties spending fewer days on the market, while average prices have remained relatively stable.

Demand and Interest Rates

One of the most notable trends in today’s market is the decline in variable mortgage rates. Each time the Bank of Canada lowers its benchmark rate, those with variable-rate mortgages see a corresponding decrease in their payments. Fixed mortgage rates, on the other hand, are primarily influenced by the bond market rather than direct decisions from the central bank. While fixed rates do not react as quickly as variable rates, they have been trending downward as bond yields decline. Some mortgage rates are now approaching or even dipping below 4%, making homeownership more affordable and leading to more attractive monthly mortgage payments.

Supply of Homes

We began 2025 with approximately 70% more active listings compared to the start of 2024. With the number of home sales down by 27% down compared to the same time last year, contributing to the growing inventory of available properties. This increase in supply provides buyers more choices and may potentially ease some of the competitive pressures seen in recent years. As the spring approaches there has been a noticeable decrease on how long a property sits on the market before it sells which stats now shows approximately 28 days on market versus 37 days from the previous month.

Market Outlook

Looking ahead, the real estate market remains poised for an eventful year. If interest rates continue to stabilize or decline, affordability will improve, likely leading to higher demand. Buyers should stay informed about mortgage rate trends and market conditions, while sellers should adapt their strategies based on local supply dynamics. Additionally, tariffs will play a significant role in shaping economic conditions, and we will continue to provide all the latest updates on the potential impact they may have on the market.