The Next Rate Announcement, and CREA Forecasts Strong Spring Market

This week’s top real estate stories.

By  Jared Lindzon | 2 minute read

Every Friday, Wahi brings you the most important real estate stories from the past week. 

No Market Slowdown For The 1%

Last year was a great year to be wealthy, but what year isn’t? As the rest of the country’s real estate market grinded to a halt, luxury and ultra-luxury sales remained stable. According to a new report by Engel & Völkers, sales of Toronto homes over $10 million tripled over the last six months. In Vancouver, those priced between $2 million and $4 million remained stable as the rest of the market slowed significantly. In the first half of 2025, the firm anticipates $1-million-plus home prices jumping 2.5% in Vancouver, 3% in Halifax and Toronto, and 5% in Montreal and Ottawa.

Rents Trending Down

After years of high inflation, it’s hard to believe anything is getting cheaper, much less housing, so we had to read the latest rent report twice. According to the data, asking rents hit a 17-month low in December, down 3.2% compared to December 2023. By comparison, national rents shot up more than 12% in 2022 and 8.6% in 2023. Over the last 12 months, rental rates have fallen more than 7% in Toronto and Calgary, and 5.8% in Vancouver. The biggest hikes were in Canada’s smallest cities, with Quebec City, Gatineau, Niagara Falls and Halifax all experiencing double-digit increases.

Are We There Yet? 

On a clear day, if you squint hard enough, you can almost see a housing market rebound on the horizon. According to a new report by CREA, national home sales were down nearly 6% in December compared to the previous month, but stood 13% above May, when the Bank of Canada started cutting interest rates. According to the report, fourth-quarter sales were up 10% over Q3, making it one of the most active non-pandemic periods of the last 20 years. That little glimmer of hope has the association predicting — or rather hoping for — a booming spring market. 

Toronto Condos on Sale This Holiday Season  

The days between Black Friday and Boxing Day weren’t just a great time to grab a new TV or mattress. According to Wahi’s latest report,it was also a great time to pick up a GTA condo, as 80% of units sold below asking in December. Last month, Torontonians were slightly more likely to get a deal than in November, when 78% of condos sold below asking, and a little less likely than December 2023, when 84% sold below asking. With a glut of inventory, GTA condo buyers are expected to remain in the driver’s seat for the foreseeable future. 

Why the Rate Cut Party Might be Ending Early  

After a couple of extra-large rate cuts to end 2024, the outlook is starting to look a little less rosy for 2025. An unexpectedly strong December jobs report — published last Friday by Statistics Canada — has cast doubt on the rate cut rally continuing into January. In a new report, TD economist James Orlando says more cuts are far from guaranteed, however, the first days of the second Trump presidency could sway the Canadian dollar in a direction that requires some action from the Bank of Canada. National Bank even suggests that rates could end the year higher than they started.

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