Market Update - May 2025

 

According to a recent RBC Economics report by Robert Hogue, dated April 15, 2025, an economic fallout from tariff concerns has shaken confidence in Canadian buyers who have delayed their search for property. The result is that resales have decreased by 12% across Canada last month. However, the supply of new listings has increased, reaching a five-year high.
 

Noted in the Canadian Press on April 15, the Canadian Real Estate Association (CREA) has downgraded its forecast for home sales as sales decreased by 9.3% in March. CREA representatives stated that market concerns were all about tariffs; however, now the concern is the actual economic fallout of the tariffs. According to CREA, the real estate market has gone from months of improvement to treading water now with a wait-and-see attitude. CREA further stated that the expectation is that property values will decrease in the second quarter of 2025.
 

With buyers hesitant to enter the market (low demand) and supply increasing as sellers want out before the fallout of a trade war, real estate has fully entered a buyer’s market.
 

If sellers wish to sell in this market, strategic pricing and marketing are paramount to acquire the best price and terms. Otherwise, sellers are competing with many other properties in a buyer’s market.

As a seller, offer an incentive to bring as many buyers and offers as possible. As stated earlier, this requires highly strategic pricing and targeted marketing.

​

 

Check my weekly real estate column at www.westmountmag.ca called

REAL ESTATE TALK & STATE OF THE MARKET