Home sales lacklustre in September as Canadian real estate association predicts 2025 market rebound

Canada's housing market showed little momentum in September, with home sales growing only slightly compared to recent months. The Canadian Real Estate Association (CREA) reports that although sales are up about 1.9% over August, they remain below last year’s levels. High interest rates and economic uncertainties are factors that have been discouraging potential buyers across much of Canada.

CREA has noted that while demand in major cities like Toronto and Vancouver remains steady, the affordability crisis is a significant hurdle for many buyers. This trend has been especially visible as interest rates continue to rise, reducing affordability and pushing some buyers out of the market. The association’s findings align with the broader industry trend, where supply constraints and high borrowing costs limit both buying and selling activity.

Looking ahead, CREA’s predictions indicate a more positive outlook by 2025. Experts suggest that with potential stabilization or reduction in interest rates, more Canadians could be encouraged to re-enter the housing market. Economic growth and stronger employment numbers in coming years may also support a healthier market environment, potentially leading to increased home sales and stabilized prices.

As CREA and other analysts wait for market changes, buyers and sellers remain cautious. For now, the association recommends potential buyers plan carefully and assess long-term affordability, as interest rates and economic indicators will likely play a critical role in shaping the housing landscape.