As we welcome 2025, Canada’s real estate market continues to show signs of growth and recovery. According to the latest figures from the Canadian Real Estate Association (CREA), national home sales rose by 2.8% in November 2024, reflecting a substantial 26% increase in transactions compared to the same time last year.
The growing momentum in market activity suggests a recovery, potentially driven by recent adjustments to the Bank of Canada’s financial strategies. In October 2024, the Bank lowered its policy rate by 0.5%, marking its second consecutive cut to encourage economic growth and improve housing affordability.
Newfoundland and Labrador’s real estate market reflects national patterns, with increased buyer interest and a steady rise in property transactions. The Newfoundland and Labrador Association of REALTORS® (NLAR) continues to support over 700 REALTORS® across the province, providing professional advocacy, continuing education, and access to the Multiple Listing Service® to facilitate these transactions.
For prospective buyers and sellers, staying informed about market trends is essential. Here are some tips to navigate the current real estate environment:
For Buyers:
Monitor Interest Rates: Keep an eye on the Bank of Canada’s policy announcements, as further rate changes can impact mortgage affordability.
Assess Affordability: Tools like mortgage calculators can help you to understand your purchasing power in the current market.
Engage a REALTOR®: Partnering with a local REALTOR® will provide valuable insights into neighborhood trends and property values.
For Sellers:
Market Timing: Consider listing your property during periods of high buyer activity to maximize exposure.
Property Presentation: Invest in home staging and professional photography to enhance your property’s appeal.
Competitive Pricing: Work with a REALTOR® to set a realistic and competitive price based on current market data.
As the year progresses, working closely with reliable real estate professionals and leveraging the tools and insights offered by CREA and NLAR will be key to making well-informed decisions in Canada’s ever-changing real estate market.
Investing in real estate remains one of the most reliable ways to build long-term wealth. While the market may fluctuate, property values tend to increase over time, making real estate a valuable asset for those willing to hold onto their investments. Whether you’re buying a home or looking to invest in rental properties, real estate offers a stable return, particularly when you take a long-term approach. With strategic choices and patience, real estate investments can pay off significantly in the years to come, providing both financial security and potential income streams.
