As we move into 2025, Canada’s housing market is experiencing significant changes. From record-high immigration to evolving economic conditions, several key trends are shaping the market. In this blog, we’ll explore how these factors impact housing and mortgage solutions, and how you can take advantage of opportunities in this dynamic environment.
Canadian Population Growth & Immigration
Canadian Population Growth & Immigration Canada's population growth continues to thrive. Permanent resident admissions reached near-record levels in Q4 2024, with an ongoing influx of immigrants into the country. This steady rise in population is expected to drive housing demand even further, creating a competitive real estate market. As more people settle in Canada, the demand for housing—and mortgage financing—remains strong, shaping the housing market in 2025. For those considering purchasing a home, this trend suggests that the housing market will remain competitive, and securing a home loan could become more important than ever.
Borrower Resilience: Canadians Are Holding Strong
Despite economic uncertainty, Canadian borrowers are proving resilient. The number of Canadians behind on mortgage payments is sitting at just 0.21%, which is a remarkably low number—only 21 out of every 10,000 households. This reflects the strength of the Canadian mortgage market and the ability of homeowners to manage financial obligations, even in tough times. It’s clear that Canadian homeowners are taking financial responsibility seriously, which is an encouraging sign for the overall stability of the housing market.
Slim Pickings for Future Buyers: Construction at Record Lows
The construction of new condos and single-family homes has hit its lowest point since 2009, signaling a potential supply shortage on the horizon. This reduction in new home construction could lead to limited housing options in the future, creating more competition for the homes that are available. As a result, buyers may face higher prices and fewer choices as the market continues to tighten. If you’ve been considering buying, it might be wise to act sooner rather than later.
A Great Time to Be a Buyer
The construction of new condos and single-family homes has hit its lowest point since 2009, signaling a potential supply shortage on the horizon. This reduction in new home construction could lead to limited housing options in the future, creating more competition for the homes that are available. As a result, buyers may face higher prices and fewer choices as the market continues to tighten. If you’ve been considering buying, it might be wise to act sooner rather than later.
Money Supply Rising: What It Means for Real Estate
Canada’s money supply is on the rise again, with M2 up 2.7% over the past three months—the fastest increase since 2021. As more money enters the economy, it tends to push up the prices of assets, including real estate. This means that if you're looking to buy, now might be the right time to lock in favourable mortgage rates before the market heats up even further. With liquidity growing, it’s essential to stay ahead of potential price increases and secure your financing sooner rather than later.
Along with local trends, international events are also affecting the housing market. The U.S. has recently implemented new tariffs on goods, which could have a ripple effect on Canadian industries, particularly construction and materials. These tariff changes are expected to drive up costs, further impacting the affordability of new homes and renovations.
For homeowners and buyers, one way to manage potential rising costs is through a Home Equity Line of Credit (HELOC). With a HELOC, you can tap into your home’s equity to fund home improvements, cover expenses, or consolidate debt. This flexible, low-interest borrowing option can help you navigate the rising costs in the market, especially as tariffs push up prices.
At Cashin Mortgages, we offer HELOC solutions tailored to your unique financial needs. If you’re looking to manage the impact of rising costs or looking to finance a home purchase, our team is here to guide you through your options.
Conclusion: Navigating a Dynamic Market
As we head further into 2025, the Canadian housing market is seeing a mix of population growth, borrower resilience, limited housing supply, and rising prices. With the influence of U.S. tariffs and the increase in money supply, it’s crucial to stay informed and prepared.
For buyers and homeowners, now is the time to evaluate your mortgage options and make strategic decisions. At Cashin Mortgages, we are committed to helping you navigate these changes and find the best solutions for your needs. Contact us today to learn more about your mortgage options and how we can assist you in this evolving market.
