Home sales in Ontario are expected to increase by nearly 10% in 2025 fueled by pent-up demand as buyers anticipate further interest rate cuts. This growth could generate a significantly stronger market momentum by next spring or summer. According to the Canadian Real Estate Association (CREA), the market is predicted to stabilize in 2024, following a slow period in 2023 and 2024.
In Ontario, home sales declined by over 12.3% in 2023 but experienced a modest recovery of 1.5% in 2024. With a forecasted 9.9% increase in 2025, sales are expected to return to levels seen in previous years. Home prices are also projected to rise modestly by 2.4%. CREA’s report suggests that markets are anticipating the Bank of Canada will return to a “neutral” interest rate by next spring or summer.
November condo sales for Guelph increased slightly over the previous month, however the average sale price increased by 7% to $584,000 or $606 per square foot. The average time on market for condo sales increased dramatically to 38 days and homes sold for 97.8% of their list price on average. Going into December, we have 139 active condo listings.
There’s a feeling of cautious optimism in the industry as we prepare to turn the corner into 2025. Interest rates are trending downward and sales are gradually picking up. I think 2025 will be a busy year as both buyers and sellers return to the market.
