In the Ontario real estate market, a key trending topic is the softening of prices, increased inventory, and the impact of interest rates on affordability and buyer behavior.
Here’s a more detailed breakdown:
- Softening Prices: The National Composite MLS® Home Price Index (HPI) declined by 0.8% from January to February 2025, marking the largest month-over-month decrease since December 2023.
- Increased Inventory: Inventory levels have risen, providing more options for buyers, with January 2025 reaching a decade high.
- Interest Rate Impact: Lower interest rates are seen as a potential buying opportunity for some, while others are hesitant due to uncertainty.
- Affordability Concerns: Housing affordability remains a significant challenge, pushing for policy changes and innovation in homebuilding.
- Market Dynamics: Sales activity is below the 10-year average, suggesting a shift towards a buyer’s market.
- Geographic Variations: The renewed softening in prices was most notable in Ontario’s Greater Golden Horseshoe region.
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Written by:
Tanya Fernandes
Owner | Broker
