Fourth Quarter Housing Data Hints at Home Sales Rebound for 2025

The Canadian Real Estate Association (CREA) recently released its fourth quarter housing data for 2024, which hints at a rebound in home sales for 2025. Here’s a closer look at the condo market:

1. Sales Activity: The fourth quarter of 2024 saw a significant increase in sales activity, with a 10% rise from the third quarter. This surge is expected to continue into 2025, especially in the spring when demand is anticipated to rise sharply1.


2. Interest Rates: The Bank of Canada’s interest rate cuts have played a crucial role in boosting demand. As rates are expected to bottom out, more buyers are likely to enter the market, including those looking for condos1.


3. Inventory Levels: While new listings dipped slightly in December 2024, the overall inventory levels remain below the long-term average. This suggests that there could be a shortage of available condos, which might drive up prices.

Price Trends: The MLS® Home Price Index (HPI) for condos showed a slight increase in December 2024, and the national average sale price for condos was up 2.5% year-over-year. This trend is expected to continue as demand picks up in 2025.


4. Regional Variations: The rebound in condo sales is expected to vary by region. Areas like British Columbia and Ontario, which have seen lower sales and more plentiful inventories, are likely to experience a stronger rebound2. Conversely, regions like Alberta and Saskatchewan, where sales were already near record levels, might see more price increases.

Overall, the outlook for the condo market in 2025 is positive, with increased sales activity and rising prices anticipated as demand continues to grow.