Canadians are looking ahead to 2025 with a positive outlook on the housing market, prompted by a series of interest rate cuts in the latter part of 2024 and changes in mortgage rules. RE/MAX Canada and its network of brokers and agents are expecting a more active market next year, with the national average residential price likely to increase by five per cent, and sales anticipated to rise in 33 out of 37 regions surveyed, with sales increases of up to 25 per cent.

The majority of the regions surveyed noted that first time homebuyers are one audience group driving the market across the nation, and many are looking for townhomes and small residential properties such as bungalows, while move-up and move-over homebuyers are looking for larger properties with additional space. On the flip side, retirees are seeking to down-size in most regions, with the exception of Calgary who are seeking villas and larger condominiums.

Read the full interactive, information packed report on REMAX.CA. Please continue to read the report HERE.

Here are the mortgage rule changes in case you missed my October 15 email:

*First, first-time homebuyers who are purchasing newly built homes or condos can now qualify for a 30-year mortgage. This means allowing lower monthly mortgage payments over a longer period of time, offering short-term relief for many young Canadians who are just starting their careers.

*Second, the government has announced it's raising the price cap for insured mortgages to $1.5 million. This move aims to help people in more expensive markets like Vancouver and Toronto, where home prices have skyrocketed in recent years. It means buyers could qualify for a mortgage with less than a 20% down payment on homes priced up to $1.5 million, as opposed to the current $1 million cap.

*Lastly, the national banking regulator says it will no longer require borrowers with uninsured mortgages to undergo a stress test when switching providers. This is great news. The Office of the Superintendent of Financial Institutions says it will end the policy for lenders to apply the minimum qualifying rate to straight switches when uninsured mortgages are renewed at a different institution under the borrower's current amortization schedule and loan amount. This change will take effect on November 21, 2024.

What's next?

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