With the arrival of the new year comes a new round of predictions about what is ahead for interest rates, mortgages, and real estate.
Generally, the mood among realtors is up-beat. The Canadian Real Estate Association has tempered its forecasts but continues to forecast increases for sales and home prices through 2025. CREA expects an active spring market. It is predicting a 6.6% increase in sales, with nearly half-a-million properties changing hands this year, and a 4.4% increase in the national average price of a home, to $713,000.
Canada’s big realtors see a stabilizing but improving market ahead.
Royal LePage is calling for its aggregate home price to rise 6.0%, year-over-year, to nearly $857,000 by the end of 2025.
Re/Max is looking forward to a 25% increase in sales with a 5.0%, year-over-year, increase in pricing.
Falling interest rates get most of the credit for fuelling a market resurgence. Five consecutive cuts by the Bank of Canada, starting back in June, dropped the trend-setting policy rate from 5.0% to 3.25%. But the Bank has signalled more cuts are coming and that might have some buyers holding back and waiting for even cheaper financing costs.
The lower rates do not offer the same benefits for homeowners who are renewing their mortgages. Even with the central bank’s cuts they are still facing significant increases over the rock bottom rates they had. The best way to secure the best rates for your renewal is to use a mortgage broker. Mortgage brokers have access to most lenders, and can do the shopping around for you. They are able to compare your current renewal offer with all of the other rates available.
If you have a mortgage renewing in 2025, please reach out to Jamie Walsh. Jamie is an experienced and knowledgeable Calgary mortgage broker jamiewalsh.ca. She would be happy to help navigate your renewal and ensure you find the best rates and terms for available!
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