5 Canadian Real Estate Headlines to Watch in 2025

This week’s top real estate stories may make the biggest news of 2025.

By  Jared Lindzon | 2 minute read

Every Friday, Wahi brings you the most important real estate stories from the past week. To start 2025, here are five headlines to follow this year.

The Mortgage Renewal Tsunami Approaches

Economists have been sounding the alarm about an approaching tsunami that is scheduled to make landfall in 2025. That’s because five years earlier the low-interest-rate pandemic period caused a spike in sales, typically on a five-year term. In November, CMHC warned that 1.2 million mortgages will come up for renewal this year, 85% of which were taken out when the Bank of Canada’s key interest rate was at or below 1%. With interest rates sitting at 3.25% to start the year, some suggest Canada will see a ripple of listings of homes their owners can no longer afford.

The Market Returns to Normal  

After years of “too hot” followed by years of “too cold,” Canada’s housing market is expected to hit the goldilocks zone in 2025. With interest rates and inflation levelling off, and with both buyers and sellers appearing ready to emerge from the sidelines, Canada’s major brokerages are anticipating a 2025 that resembles a more typical pre-pandemic year in the housing market. Royal LePage predicts a 6% increase in prices and buying conditions coming “back in line with long-term historical averages.”

Housing to Get (Even More) Political  

We don’t have a crystal ball, but it doesn’t take a fortune teller to predict the country’s real estate market is poised to get more tangled up in politics this year. As Canadians prepare to cast their ballots in the upcoming federal election later this year, polling data suggests housing and affordability will be top of mind. The current Liberal government has made many changes to housing policy in recent months, and those efforts will likely continue, as the opposition floats alternative solutions — but that’s only the beginning. Incoming American President Donald Trump has also threatened 25% tariffs that would send shockwaves through Canada’s economy and housing market.  

Toronto Condos to Stay Grounded  

Like the transit rider who misread the schedule, Toronto’s condo market is about to miss the bus in the country’s general housing market recovery. Though projections are broadly optimistic for 2025 experts, suggest the struggling market will remain an outlier for the foreseeable future. Despite predicting a 7% price increase for the city’s detached homes, Royal LePage suggests Toronto’s condo market is on a “different trajectory” and will instead decline by 1%. That’s because, after sales hit a 30-year low, the market remains flooded with inventory — nearly 40,000 units — that need to be sold off before condo values can bounce back. 

The West Coast Won’t Stay Real Estate’s Best Coast  

One of the biggest anticipated changes in Canada’s real estate market this year will be largely symbolic, as Toronto is on pace to overtake Vancouver as the country’s most expensive housing market. With its mountain views, West Coast vibes, and natural borders, Van City has long remained the most expensive place to buy in Canada. However, experts say its reign is coming to an end. Royal LePage president and CEO Phil Soper predicts that softening prices in the West Coast, coupled with skyrocketing demand in the 6ix, will eventually put Hogtown ahead of Gastown prices at some point this year.

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