Part #1 – Buyers Show Optimism and Sellers Adjust Their Expectations as Market Conditions Shift
54% of Canadians believe this fall is a good time to strike a deal on a home. REMAX brokers and agents report an increase in conditional sales – RE/MAX Canada
Following a period characterized by consumer uncertainty and a pull-back of buyers during the first quarter of 2025, the Canadian housing market may be turning a new leaf this fall. Improved affordability and a boost in inventory levels could entice cautious buyers back into action.
According to data supplied by REMAX brokers and agents, home sales declined year-over-year in 62 per cent of markets analyzed between January 1 and July 31, 2025, largely reflecting the economic uncertainty being felt across the country. Meanwhile, residential price trends varied regionally, rising across Atlantic Canada and the Prairies, while declining in major urban centres in Ontario and British Columbia.
In contrast to the inventory shortfall that defined many markets in 2024, 2025 saw listings increase in Ontario and British Columbia, signaling a shift to buyer’s market conditions. Meanwhile, tighter inventory levels in the Prairies and Atlantic Canada indicate conditions favouring sellers.
“Canada’s real estate landscape paints a complex picture of resilience and caution, influenced by regional nuances and continued economic uncertainty. From seller-driven markets across much of Atlantic Canada and the Prairies, to buyer-friendly conditions in Ontario and BC, the nation’s housing market reflects a delicate balance,” says Don Kottick, President of REMAX Canada. “What hasn’t changed is that Canadians see value in home ownership, and an experienced, professional real estate agent can help buyers and sellers tailor their strategies to better set themselves up for success, regardless of market conditions.”
First-Time Homebuyers Shifting in Demographics and Influence
In 2024, first-time buyers drove sales in the majority of markets across Canada. In a notable shift, REMAX brokers and agents report that first-timers have taken a back seat in today’s market, with families, new Canadians and retirees driving the bulk of activity in 2025.
7% of Canadians say they intend to buy their first home within the next 12 months.
This group is trending older, with many now entering the market in their late-20s to 40s, reflecting both broader affordability challenges and the increasing complexity of entering the market. The Leger survey also reveals that today’s first-time homebuyers are financially varied, some entering with strong savings and others relying on more creative strategies to get their foot in the door.
Twenty-eight per cent of those planning to buy their first home in the next 12 months say they have saved at least 20 per cent for their down payment, while 33 per cent have saved 15 per cent or more, and 13 per cent have saved at least 10 per cent. Only one in 10 Canadians say they have been gifted money to help them buy a home, suggesting many are finding their own way, such as through disciplined saving, or co-ownership models and other non-traditional approaches.
While 12 per cent of Canadians say they plan to purchase a home in the next year, many are watching the market closely for the right moment to act. Among this group, 68 per cent say a five- to 10-per-cent drop in property prices would make a meaningful difference in their ability to enter the market, while 64 per cent say they’d feel ready if interest rates fell by 0.5 to one per cent.
“These insights paint a picture of first-time buyers who are older, more financially prepared in some cases, but still navigating significant headwinds and waiting for the market to meet them halfway,” says Kottick. “The good news is inventory levels are rising in most regions, giving buyers more choice, negotiating leverage and more time to make purchasing decisions.”
-Don Kottick, President of REMAX Canada
RE/MAX CANADA
To read this comprehensive Fall Market Report by RE/MAX Canada, visit REMAX.CA
