As homebuyers across Canada wait and wonder, a quiet shift is underway. After years of bidding wars, record-low listings and rising interest rates, the 2025 housing market looks a little different, particularly in major centres such as the GTA, Vancouver, Calgary and Edmonton. Across these markets, inventory is climbing, sellers are adjusting and interest rates have begun trending downward. For many, this begs the question: Is now finally a good time to buy? Let’s break it down.

A market with more choice

According to recent data from the Canadian Real Estate Association, housing inventory in key urban markets has grown steadily over the past six months. New listings are up, and active inventory levels, especially in Alberta and Ontario, are giving buyers more breathing room than they’ve had in years.

Why the shift? A mix of factors:

• More homeowners are listing ahead of mortgage renewals
• Pre-construction completions are hitting the market
• Buyers are more cautious, giving sellers less leverage

This has created what some would call a “balanced market,” and in certain neighbourhoods, even a buyers’ market as prices have dropped in some areas quite significantly from the height of the market in early 2022. Translation: More negotiating power, less pressure to waive conditions and actual time to think before you sign.

Mortgage rates: Slowly but surely, they’re moving

After two years of aggressive interest rate hikes, we’ve finally started to see some movement in the other direction. In June 2024, the Bank of Canada made its first rate cut since 2020, a symbolic shift that could continue if inflation remains under control. While fixed mortgage rates had already started to edge lower in anticipation, this move may signal more favourable borrowing conditions ahead.

If you’re a buyer who was priced out by rate increases in 2023 or 2024, now might be the time to revisit your numbers. With mortgage approvals becoming more flexible and options more competitive, monthly affordability is improving – even if prices haven’t dropped dramatically.

Prices are stable, but not soaring

Contrary to some expectations, we haven’t seen a crash in home prices. Instead, while some markets have seen prices drop 10 to 15 per cent from the peak in 2022, many markets have seen flat or slightly softened prices, especially in suburban areas or higher-density housing types such as condos and townhomes.

This stability can actually be good news. It suggests a healthier, more sustainable market – one that isn’t driven by frenzied speculation or fear of missing out. For buyers, that means a clearer picture of what they’re walking into. No guessing games. No wild swings.

So, is now a good time to buy?

There’s no universal answer, but here’s a good framework:

Yes, now could be a good time to buy if:

• You have a stable income and a down payment in place
• You plan to stay in your home for at least three to five years
• You’re buying a property that meets your long-term needs
• You’re getting a mortgage rate that aligns with your monthly comfort zone

If that’s you, the current market could offer more selection, less competition and improving borrowing conditions.

At Homewise, we work with first-time buyers and seasoned homeowners every day, helping them compare mortgage options from more than 30 lenders. What we’re seeing right now is slightly renewed optimism, especially among those who were sidelined last year due to rates or limited inventory. That doesn’t mean it’s a race. But it does mean opportunity is creeping back in.

Final thought

Markets don’t always send a clear signal. But growing inventory plus easing rates equals a compelling combination. For buyers who are prepared, thoughtful and financially ready, this could be a window worth considering. And if you’re not quite ready to jump in, that’s okay, too. The market is shifting toward balance. Which means, for once, time may be on your side.