The housing industry knows this story all too well: prices are soaring and demand (until recently) has been relentless yet projects are stalling. The blame often falls on high land values or developer greed, but the real culprit is clear to anyone in the sector—it’s the staggering cost of delivering new homes.

The numbers are sobering. The Canada Mortgage and Housing Corporation (CMHC) says that we need to build 5.8 million new homes by 2030 to restore affordability to 2004 levels. If successful, that would mean that a newly built 1,000-square-foot, two-bedroom condo in downtown Vancouver would sell for $620,000 instead of the $1.5-million that it currently does. 

But here’s the reality: even if land were free and developers waived their profits, that condo would still cost more than $1-million to build. In Toronto, it’s a similar story, with hard costs alone pushing the price beyond $800,000.

By the numbers

Here’s how the numbers break down for that $1.5-million Vancouver condo:

• $294,000 (20 per cent) is for land acquisition
• $490,000 (32 per cent) is for hard costs (i.e. labour, building materials)
• $102,000 (7 per cent) is for soft costs (i.e. architectural designs, legal fees)
• $92,000 (6 per cent) is for marketing and realtor commissions
• $77,000 (5 per cent) is for finance charges and loan interest
• $267,000 (18 per cent) is for government taxes and fees
• $178,000 (12 per cent) is the gross profit margin required by banks to provide financing

(Numbers rounded for clarity)

Climbing costs lead to stalled projects

This isn’t news to anyone in the industry. What’s alarming is how quickly these costs are climbing, forcing projects to stall or fail altogether. In Vancouver and Surrey, B.C. alone, 58,000 homes are paused because the cost of delivering them exceeds what buyers can pay.

So, if the affordability crisis is really a cost-of-delivery crisis, what can be done? While macroeconomic factors like interest rates and global material costs are beyond our control, governments hold significant levers to reduce costs and unlock stalled projects.

Three areas of reform stand out:  

1. Reduce financing costs for housing projects

• Allow development cost charges (DCCs) and municipal levies to be paid at the end of a project, rather than upfront. This would reduce financing costs and free up critical capital.
• Exempt DCCs from GST/PST/HST and land transfer tax calculations—double taxation only inflates prices unnecessarily.
• Expand municipal surety bond programs to replace capital-intensive letters of credit, unlocking billions in tied-up equity.

2. Provide stability for developers 

• End the constant churn of new regulations. Introduce in-stream protections so projects already in process aren’t derailed by sudden policy changes or fee hikes.
• Expand the pre-sale period in British Columbia—currently, developers have only 12 months to meet pre-sale requirements for projects to move ahead, resulting in many projects not launching, or failing to meet requirements. This holds housing projects back that would otherwise be able to move forward 
• Establish a nationwide policy moratorium to provide the sector with a stable planning environment for the next five to 10 years.

3. Implement fairer ways to fund infrastructure and amenities

• Create a municipal services corporation for water and wastewater services so that regional districts can borrow and amortize infrastructure costs over time instead of relying solely on development cost charges.

While these changes require government leadership, the industry has a role to play. Developers need to speak with a unified voice, push for sensible reforms, and share the data that demonstrates the urgent need for change. Transparent conversations about what it actually takes to bring homes to market will help shift public perception and rebuild trust in the sector.

CMHC’s affordability target isn’t impossible—but it demands bold action. The time for incremental adjustments is over. If we want affordability to return to Canadian housing markets, we need governments and industry to tackle the true crisis: the soaring cost of delivering homes.

More than four million Canadians currently own an investment property and millions more are looking to access this business opportunity¹. Yet, until now, there was no one place to see financial metrics for residential real estate investment opportunities and be serviced by trained investment-focused agents. Royal LePage® was inspired by this opportunity to create a new investor marketplace.

Having brought together the most progressive and innovative minds in the industry, Royal LePage is proud to announce the launch of its highly-anticipated, first-to-market RLP InvestorsEdge™ program. The new program is comprised of two parts:

• A national investor portal: Canada’s most-visited real estate company website, royallepage.ca, will offer a gateway to rlpinvestorsedge.ca, the most comprehensive Canadian residential real estate investment website. In addition to preconstruction and investor-suitable listings, the site will offer consumers access to investment-specific tools including ROI and rental estimators, a first-year cash flow analysis, and a 10-year Proforma statement.
• A masterclass series: A six-module course that can introduce an agent to the investor segment or elevate an investor-focused agent’s business to the next level. The course is focused on residential real estate investment property types including income properties, short-term rentals and recreational units, and preconstruction. It covers how to:

• • build a more diverse, resilient and profitable business that is more resistant to the ebbs and flows of the residential real estate market by adding an investor-focused segment;
  • grow your existing client database by appealing to the growing investor segment;
  • complete an Investor Client Intake form;
  • create a personalized Real Estate Action Plan for each of your investor clients;
  • use the Proforma and financial metrics tools provided to assess an investment property and conduct the relevant sensitivity analysis for your clients; and
  • visualize the process through practical case studies of specific investor scenarios.

“As a long-time innovator of new and relevant service offerings to the industry, we pride ourselves on identifying opportunities that serve both our agents and consumers concurrently. In a market where 26 per cent of Canadians have said they plan to buy an investment property in the next few years, we are excited to hear from our brokers and agents that this program is a game-changer that will help them offer unparalleled service to investor clients,” said Carolyn Cheng, COO, Royal LePage.

To bring this innovative investor-focused program to life, Royal LePage partnered with the visionary founders of Playbook™, who bring 40 years of collective investment real estate experience to the table. They have amassed this experience by building one of Royal LePage’s top teams with a primary focus on serving the residential real estate investor segment. Over the course of the last year, the joint team worked tirelessly to bring this ambitious vision to life.

“Playbook International Media’s partnership with Royal LePage represents the pinnacle of my life’s work – to serve Canadian investors with honesty, integrity and purpose – all while aligning with Canada’s largest, most trusted and technology-forward real estate company. The RLP InvestorsEdge platform is designed to revolutionize how real estate professionals serve their clients. It’s not just about doing more business; it’s about elevating the value we provide to investors,” said Simeon Papailias, CEO and Founder of Playbook.

Agents looking for more information can speak with their local Royal LePage broker or manager. Royal LePagers interested in signing up for the Masterclass Series can do so by visiting our website. For any questions, please send us an email at investorsedge@royallepage.ca.

___________________________________________

¹ More than 1 in 4 Canadians plan to purchase an investment property in the next five years: Royal LePage Report, May 2023

This is not intended as an offer to sell or a solicitation of an offer to buy, including a solicitation of any sales representatives or broker that is currently under contract. All offices are independently owned and operated. Those offices marked as “Royal LePage® Real Estate Services Ltd., Brokerage”, including its “Johnston & Daniel®” division, “Royal LePage® Credit Valley Real Estate”, “Royal LePage® West Real Estate Services”, “Royal LePage® Sussex”, and “Les Immeubles Mont-Tremblant / Mont-Tremblant Real Estate” are owned and operated by Bridgemarq Real Estate Services®. View important disclosures and notices about Royal LePage trademarks at rlp.ca/notices.

By most projections, the Canadian housing market is expected to see modest sales and price gains in 2025, but “it’s still a long way back to the 2022 highs,” according to BMO Senior Economist, Robert Kavcic. 

In BMO’s housing outlook for 2025, Kavcic predicts national home prices won’t push past 2022 levels until 2029 under the bank’s base-case scenario.

Modest growth in sales and prices

According to the report, sales volumes are expected to rise 12 per cent this year, driven by a rebound from the “depressed” levels of the previous year, while the benchmark home price is forecasted to climb a modest 4 per cent “as still-challenging affordability and investment calculus will keep the rebound in check.”

Regionally, Southern Ontario and British Columbia—markets that saw some of the sharpest declines—are expected to recover, while Alberta and Atlantic Canada, which outperformed during the pandemic, are likely to see more tempered growth. 

BMO highlights a sharp contrast in performance within major cities like Toronto, where single-detached homes are in demand but, as we’ve heard repeatedly, the condo market faces mounting pressure due to an influx of new units hitting the market. “Look for condo prices to struggle in 2025 even if the single-detached market improves further,” the report states.

Mortgage rates near cycle lows

Mortgage rates are another critical factor shaping the housing market in 2025. BMO notes that most of the Bank of Canada’s current rate-cut cycle has already been priced into fixed mortgage rates, which are now in the low-to-mid 4 per cent range. Kavcic adds, “There is room for variable rates—currently around 4.7 per cent—to test the 4 per cent level, which would be an important psychological and valuation barrier, but the Bank will have to continue easing.”

New mortgage rules implemented in December “should incrementally ease conditions into the spring season.” These include an increase in the price cap for insured mortgages, from $1-million to $1.5-million, and the extension of 30-year amortizations to first-time buyers and purchasers of new homes. Kavcic expects these changes could make housing more accessible, particularly in larger markets where lower-end single-family homes and larger condos often fall within the updated price range.

Challenges in affordability and investment

Despite these positive trends, affordability remains a significant challenge. Kavcic is calling for sub-4 per cent borrowing costs: “If we plug 3.9 per cent mortgage rates and a 30-year amortization into our affordability calculator, we get back into the realm of what was sustained pre-pandemic, assuming prices remain at current levels.”

The economist says this scenario could allow room for prices to rise modestly without (again) running into affordability constraints. 

A cooling rental market

There are notable shifts happening in the rental sector. A combination of reduced immigration targets and an influx of new rental supply is driving down rents in major markets. The report cites data from Rentals.ca, showing a “near double-digit decline in 1-bedroom Toronto apartments.” This trend is expected to continue through 2025, with higher vacancy rates and falling rents bringing relief to renters.

Long-term outlook

Looking ahead, BMO underscores that the Canadian housing market is in the middle of a “prolonged period of consolidation.” Kavcic compares the current trajectory to past corrections, including the deep housing downturn of the 1990s. While today’s economic conditions differ significantly, the demographic and financial pressures on the market are reminiscent of that era.

“Suffice it to say, this was an extraordinarily bullish trio that won’t be repeated,” referring to the convergence of low interest rates, peak millennial demand and record immigration that fueled the 2022 highs. With these forces now dissipating, the road ahead is one of gradual recovery rather than “exuberant” growth.

The influx of 471,771 new permanent residents in 2023—and a targeted 485,000 for 2024—was a transformative force in driving luxury real estate demand across Canada’s major cities, according to the Sotheby’s International Realty Canada Top-Tier Real Estate: 2024 State of Luxury Annual Report. The Bank of Canada’s monetary easing, which began in June, further fueled market momentum.

Although affluent buyers are less affected by mortgage rates, successive interest rate cuts enhanced consumer confidence and facilitated movement from conventional markets into entry-level luxury segments.

By October 2024, home sales activity across Canada’s MLS systems climbed 7.7 per cent month-over-month—the highest since April 2022—followed by another 2.8 per cent increase in November. The Bank of Canada’s December rate cut of 50 basis points to 3.25 per cent is expected to further energize the market in 2025.

“Canada’s conventional and luxury real estate market demonstrated remarkable resilience in 2024 and closed the final quarter of the year with a pick-up in sales activity that foreshadows further improvement in the months ahead,” said Don Kottick, president and CEO of Sotheby’s International Realty Canada, in a press release.

Greater Toronto Area (GTA)

The GTA led Canada’s luxury market resurgence, with sales over $4 million rising 21 per cent year-over-year in 2024. Single-family homes dominated, making up 91 per cent of luxury sales in this segment. Ultra-luxury sales over $10 million increased 20 per cent, supported by a mix of MLS and private transactions.  

Calgary

Calgary experienced the fastest growth in luxury sales among Canada’s major cities. Sales over $1 million surged 42 per cent, while those over $4 million doubled year-over-year. Single-family and attached homes saw the steepest increases, reflecting a population-driven demand boom.  

Montreal

Luxury sales in Montreal showed notable resilience, with $4 million-plus sales up 16 per cent and $1 million-plus transactions rising 38 per cent. The city reported strong growth across all housing types, with condominiums seeing a 53 per cent increase.  

Vancouver

Vancouver’s luxury market lagged in 2024 due to misaligned seller expectations and a softer local economy. Sales over $4 million declined 11 per cent, while ultra-luxury transactions over $10 million fell 29 per cent. However, $4 million-plus condominium sales rose 26 per cent, reflecting an emerging opportunity in this segment.  

The bottom line

Kottick highlighted Toronto and Montreal’s revitalization as a model for national market improvement, driven by realistic pricing and falling interest rates. He also noted that Calgary continues to lead expansion in top-tier housing sales, putting unprecedented pressure on housing supply and prices.

Kottick contrasted this with a weaker picture of Vancouver’s economy, and “the ongoing standoff between sellers clinging to peak-era valuations and buyers demanding prices that reflect today’s reality” that’s slowing Vancouver’s market.

He also emphasized the long-term investment potential of luxury condominiums in Toronto and Vancouver, where declining prices and low competition create favourable conditions for buyers. As population growth intensifies housing demand, these markets are poised for future gains.  

Quebec-based real estate portal, Homz.io, recently announced its rebrand aimed to help new homebuyers and renters across Canada. Formerly known as GuideHabitation.ca, the portal has been around since 2004 and is now growing, starting with British Columbia.

The team has been expanding its presence in B.C. for over a year, offering the technology and business model as a SaaS platform to third parties, like communication firms and specialized websites.

The portal

The portal attracts over 100,000 monthly visits from home seekers comparing real estate projects—from pre-sale condominiums to move-in-ready homes, to new rental units. The company notes the traffic is partly due to its focus on user needs over a purely advertising-driven approach.

“Our strength is in making new real estate searches easier and providing new homebuyers with comprehensive, factual and fairly objective information,” said Founder Denis Sauvé in a press release.

A 20-year journey

Sauvé reflected on the company’s two-decade journey: “20 years on the web feels like 100 in other industries. Yahoo was still a giant when we launched, and social media platforms like Facebook and YouTube didn’t even exist.”

When it first launched in 2004, the website had what Sauvé described as a “fast-food menu design.” However, it was ahead in search engine optimization, which laid the foundation for the site’s growth into a hub for new real estate projects.

Since then, the company says most of Quebec’s builders and promoters have showcased their houses and condominium projects to potential customers.

Future plans with AI

Moving forward, the company’s co-founders face the expanding impact of artificial intelligence. “Search habits are constantly evolving. People are turning to YouTube, Instagram, TikTok, Reddit, ChatGPT and countless other apps for any information … AI is just getting started. Who knows what the next few years will bring?” Sauvé pointed out.

So, Homz.io is integrating generative AI along with other new technologies into its proprietary codebase. The platform remains committed to its user-centred philosophy.

“Being here after 20 years is an achievement in itself. And the future looks exciting,” Maurizio Furnò, associate, expressed. “We are happy as a small business, and we aim to continue our journey controlling our growth path.”

In 2023, Ontario dominated Canada’s housing searches. Last year, Alberta cities like Edmonton and Calgary captured attention, with their more affordable housing and lower living costs, reports Zoocasa.

This trend shows in Canada’s top five searched cities last year: Toronto, Edmonton, Calgary, Mississauga and Vancouver.

Toronto remains the leader, with one-bedroom rents averaging $2,374 and home prices at $1,061,700. Vancouver follows, with Canada’s highest rents at $2,534 and even higher home prices averaging $1,172,100. Mississauga, a city offering more affordable rents at $2,279, remains a key option for those seeking proximity to Toronto’s bustling urban core.  

Ontario’s housing landscape

Ontario continues to dominate real estate searches, driven by its population density and economic opportunities. Cities like Mississauga, Hamilton, Ottawa and Oshawa follow Toronto’s lead:

Hamilton. An hour west of Toronto, it attracts first-time buyers with relatively affordable home prices and rents.  

Oshawa. Known for its budget-friendly condo townhouses, Oshawa appeals to price-conscious buyers who want easy access to Toronto.  

Ottawa. Canada’s capital offers a stable job market, quality of life and affordable housing compared to Toronto. Its proximity to Quebec’s scenic lakes also makes it a gateway to budget-friendly cottage properties.  

Alberta: A practical, more affordable alternative

As living costs soar, Alberta’s cities provide a practical alternative for buyers and renters.  

Calgary. With one-bedroom rents averaging $1,634 and homes priced at $575,600, Calgary blends urban amenities with outdoor adventures. Its proximity to the Rockies and vibrant cultural scene make it a top choice for families and young professionals.  

Edmonton. A standout for affordability, Edmonton offers one-bedroom rents at $1,355 on average and home prices of $395,400, making it one of Canada’s most cost-effective urban centres. Its robust economy and lower cost of living attract investors and first-time buyers alike.  

Who’s driving the market?

Two key demographics are fueling the housing market. 25-34-year-old young professionals and first-time buyers dominate searches, looking for affordability and urban convenience.

As well, 45-64-year-old buyers seek to downsize or assist their children with housing costs.  

Review the full report here.

Rate-My-Agent.com is a rating and review tool based solely on independently verified client reviews that helps consumers find the right real estate agent to represent them.

The company publishes a list of Canada’s top 100 real estate agents each year. Agents are rated based on several factors mentioned in client reviews: knowledge, professionalism, responsiveness, usefulness of their website, value of their service, marketing reach, lead generation and home prep and staging advice.

“Agents can’t pay to have negative reviews removed or hidden and cannot pay to be included on the list of top-rated agents,” says Rate-My-Agent.com. The company won’t disclose exactly how it verifies reviews “to protect the integrity of the process.”

2024’s winners

With 89 reviews, Martin Dumont from Montreal earned the award of top agent in Canada for 2024, his fourth consecutive year. Patrick Field of Edmonton took second place.

The rest of the top 10 agents are:

• Stefan Cormier
• Mitch Stretch
• Krista Lapp
• Shayne Malone
• Che Taylor
• Kunal Tyagi
• Irina Glikshtern
• Linda Van Den Broek

Top Giving Agents in Canada

Introduced last year, the Top Giving Agents in Canada ranks agents based on their donations to registered Canadian charities.

“When choosing an agent to work with, people can consider if the agents’ values align with theirs, and hopefully, this helps people find the right agent,” adds Rate-My-Agent.com.

Check out the top 100 agents in Canada and the top giving agents in Canada lists.

Solo renting is becoming a defining trend in Canada’s housing market, with seniors aged 65 and older emerging as the largest demographic driving this shift, a Point2Homes study shows.

With 4.4 million Canadians living alone in 2021—over 2.6 million of which are in Ontario and Quebec—one-person households have doubled since 1991, and solo renters now comprise over 50 per cent of this group, surpassing solo homeowners.

This surge reflects broader societal changes. Rising housing costs have made homeownership unattainable for many, particularly in urban centers like Toronto, Vancouver and Montreal. 

Renting offers a more accessible option, allowing individuals to maintain independence without the long-term financial burden of owning a property. Additionally, evolving societal priorities—such as a focus on personal freedom, delayed family formation and the increasing preference for hassle-free living—have contributed to this trend.

A third of Canada’s solo renters are seniors

Older renters are particularly drawn to downsizing, flexibility, reduced responsibilities and the adaptability of renting as they navigate life changes like widowhood or divorce. Seniors now make up one-third of Canada’s solo renters, with their share growing faster than any other age group between 2016 and 2021.

In cities like Ontario’s Halton Hills and Caledon, over half of solo renters are seniors, reflecting a broader shift in demographics. 

More younger renters in urban hubs

Meanwhile, younger solo renters gravitate toward urban hubs like Toronto and Montreal for education, career opportunities and cultural attractions.

Despite their numbers, younger generations are struggling to afford solo living, with high housing costs and postponed life milestones influencing their choices.

Single-family home rentals gaining popularity

Additionally, the type of housing solo renters prefer is evolving. While apartments remain popular, more renters are opting for single-family homes and two-bedroom units, signalling a desire for flexibility and extra space to accommodate varied lifestyle needs, whether for a home office, a guest room or more comfortable living conditions.

Single house renters surpassed 25 per cent of renters in 16 Canadian cities.

With the rise of senior solo renters, there’s a growing focus on creating housing that prioritizes accessibility, comfort and community integration. By addressing social isolation, financial challenges and the need for adaptable spaces, Canada’s housing market can better serve its aging population and redefine independent living for future generations.  

Review the full report here.

It’s been an unusually busy fall for much of Canada’s housing market and some regions are experiencing extraordinary activity into December, sparking optimism for 2025. 

What’s buoying that sense of optimism is a number of policy decisions on the federal level that many say will continue to boost the market in 2025. 

Those include the continued easing of interest rates by the Bank of Canada and measures by the federal government in “delivering the boldest mortgage reforms in decades” to make it easier for people to buy homes.

Just how solid and healthy is the market?

November by the numbers 

Recent data released by the Canadian Real Estate Association showed that overall MLS sales in Canada of 37,855 in November were up 26 per cent from a year ago, led by whopping annual increases of 47 per cent in Montreal, 38.6 per cent in the Greater Toronto Area and 28.6 per cent in the Greater Vancouver Area.

Marc Lefrancois, broker/co-owner with Equipe Lefrancois in Montreal, said the market is bouncing back after a tumultuous 18 months. After the pandemic, sales volume dropped drastically. Recovery began last January. But September and October began to see the recovery in full swing.

“Instead of having a very typical quiet November and December, we’re actually really busy right now,” he said. “Obviously Montreal having a lower price point than Toronto or Vancouver creates a bigger mass of people that are going back to buying homes or creating their property.

“Right now, we’re busy as crazy. I’m a little scared and worried because I think my holiday season is going to be crap. But we’re really busy right now.”

Supply vs. demand

Lefrancois explained that, yes, there are many buyers coming to the market but there are also sellers, adding he’s done a record number of home valuations for December.  People are buying now because they believe prices are going to go up and they will have to pay more next year. Sellers are coming onto the market not to miss out on the demand. 

And while there are sellers, there aren’t enough.  “Prices are starting to go up again. The problem is that supply isn’t there,” he added.

Busiest December in a decade…for some

“The only year I can compare (November and December this year) is 2011. For a while, U.S. banks were in jeopardy and everybody was stressed out about the U.S. banking system (would) collapse. In Montreal, volumes went down to zero because people were worried about what was going to happen. When they realized the banks weren’t going to collapse, we got really busy. I remember that holiday period I was at the office every single day except for the 25th and the 1st. It looks and feels like that right now. The month of December has been the busiest probably in at least the last 10 years for sure.”

He said he usually lists three to four homes at the beginning of January, but this year he’s looking at 10 or 12.

Tim Hill, with Re/Max All Points Realty based in New Westminster. B.C., said the last four weeks have been busier than normal for this time of year, adding last year’s Fall market was rough.

“In the trenches here this year, I’m surprisingly busy right now. Typically middle of December we’re really quiet. Usually the beginning of December it slows down but the last four weeks have been super busy. People have been making offers, and getting deals done. The ones that are doing it are doing it in anticipation of further rate cuts next year and thinking to themselves that if they can get ahead of that curve and get in or get moved before there’s any potential of madness it will just be a calmer move and if the numbers make sense why not do it now, why wait basically,”  he explained.

He said there’s a pause right now in sellers listing their homes as they’re gearing up to go to the market at the beginning of January.

But it’s not the same in other cities. Randy Ryalls, Royal LePage Sterling Realty in Port Moody, B.C., said December hasn’t been a continuation of November in his market.

“But that’s not unusual. Things tend to slow down in December. People tend to turn their attention to Christmas. Our October was our best month and then November continued on that trend but to a lesser degree. Our October was up about 32 per cent over October 2023. November dropped off a little bit as is kind of usual this time year. December is certainly quieter in our experience,” he said, adding sales are probably just under the 10-year average.

“For the first time in a long time, at least in Greater Vancouver, we actually have probably a sufficient amount of inventory to not really get into a serious bottleneck.” – Randy Ryalls

Though Ryalls believes 2025 is going to be very busy as things are lining up that way with new lending rules to expand the market which is important to an expensive market like Vancouver. 

“For the first time in a long time, at least in Greater Vancouver, we actually have probably a sufficient amount of inventory to not really get into a serious bottleneck,” said Ryalls, adding there’s probably about two years of pent-up demand in the market.

Cameron Forbes, with Re/max Realtron Realty in the GTA, said sales so far this month are higher than a year ago. 

“It will be a month where unit sales are up just like October and November. I’m not sure it will be 40 per cent but 20, 30 per cent for sure. So the market is more active than December 2023. December is normally a slower month…but because we’ve had rate decreases it certainly has helped more buyers ask the question is now the time to buy, should I be back in the market, what can I afford,” he said.

Forbes expects increases in monthly sales into the New Year.

Positive outlook for 2025

Brayden Irwin, Broker with the Lome Irwin Team in Toronto, affiliated with Royal LePage, said there’s a much more positive outlook on the market and on the cost of debt, which obviously plays a big factor for a lot of people and how comfortable they are taking on an investment of this size and whether they can afford it. 

Prices have softened from 2022 highs and interest rates have likely peaked, so now’s probably a good time to buy if people want to try and get ahead of what could be a stronger spring market with more competition. 

“That’s probably what’s kind of fueled the market in 2024. I think a lot of people were expecting earlier on in the year that interest rates were going to come down sooner than they did and so that forecast kept getting pushed out, pushed out, pushed out, but obviously over the last three interest rate announcements they’ve accelerated the amount that they’re decreasing them each announcement,” added Irwin. 

He said the mortgage reforms are intended to make housing more accessible allowing more people to be able to participate.

“And if more people are participating and we’re not able to keep up with the supply, then that should lead to an increase in prices. I think that is what most people are anticipating is going to happen over the next year.  So pretty positive outlook when you’re looking forward.”

A “tremendously busy December for sales” for Calgary Realtor

Joel Semmens, with Re/Max House of Real Estate in Calgary, said his sales, which concentrate on higher-end and inner-city properties, experienced a slight pullback in volume from September to November.

“But oddly December we’ve been run off our feet again in terms of sales. It was almost like a bit of a delayed market. I think the interest rate cut as another half a point has kind of helped fuel the market back up and it’s been a really tremendously busy December for sales,” he explained. “Busier than we typically get.

“I think we’re going to have a very busy market starting by mid-February. I think we’ll see an uprise in terms of people bringing their houses to the market to beat the spring and summer rush. I think we’re going to see more inventory coming to the market in February and March…It’s going to be a strong market.”

Renata Reid, senior vice president of Sales with Sotheby’s International Realty Canada in Calgary, says she’s seeing a “phenomenal” December, “with multiple offers still happening right now, which is unusual for this time of year.”

Reid adds, “And our market was already crazy. It’s going to be a really hot market for Calgary going forward.”

Average asking rents for residential properties in Canada fell to $2,139 in November, marking a 15-month low, according to the National Rent Report by Rentals.ca and Urbanation. This represents a 1.6 per cent year-over-year drop and a 0.6 per cent decrease compared to October. The decline follows a similar trend from earlier in the fall, with rents down 2.2 per cent over the past three months.

“Overall, the recent decline in rents has been very mild and is allowing affordability to improve following a rapid escalation in rents over the past few years,” said Shaun Hildebrand, President of Urbanation. “Declines so far are mainly focused within the secondary market for condos and houses, mostly in B.C. and Ontario, while purpose-built rents are stable.” 

Despite the drop, rents remain significantly higher than historical levels. They are up 6.7 per cent compared to two years ago and 18.8 per cent from three years ago. Over the past five years, rents have increased at an average annual rate of 3.4 per cent, which according to the report is “generally in line” with long-term trends.

Regional variations highlight market differences

Ontario saw the steepest declines, with average apartment rents dropping 6.4 per cent year-over-year to $2,351. Two-bedroom apartments in the province saw the largest drop, down 7.6 per cent. B.C. also reported a decrease, with rents falling 2.3 per cent annually to $2,524. Quebec saw a marginal decline of 0.4 per cent, bringing the average asking rent to $1,969.

Other  provinces bucked the national trend. Alberta rents rose 3.7 per cent, while Saskatchewan saw a 12.1 per cent jump and Manitoba’s average rent jumped 7.9 per cent. In the Maritimes, rents grew by 5.1 per cent in New Brunswick and 4.4 per cent in Nova Scotia. Newfoundland and Labrador remained relatively stable, with rents declining by only 0.4 per cent.

Declines in Canada’s largest cities 

Rents fell in Canada’s five largest cities. Toronto’s average asking rent dropped 9.4 per cent year-over-year to $2,640, reaching a 28-month low. Vancouver saw an 8.9 per cent decline to $2,888, its lowest point in 30 months. Calgary, Ottawa and Montreal also reported year-over-year decreases of 5.8 per cent, 3 per cent and 2.3 per cent, respectively.