Housing Market Outlook: What to Expect for the Rest of the Year
Team Olivieri
Monday, May 12, 2025
Between fluctuating interest rates, rising home prices, and shifting inventory levels, the 2025 housing market has had many Canadians wondering: Should I wait or make a move now?
The good news is that leading real estate experts are beginning to release updated forecasts for the second half of the year. And overall? It’s looking a lot more promising than some headlines suggest.
According to Business Insider,
“As mortgage rates go down this year, affordability may improve slightly for homebuyers. Inventory is also expected to grow, which should help moderate price growth and make finding a home easier.”
Let’s break it down:
1. Mortgage Rates Are Expected To Ease (Slightly)
While a dramatic rate drop isn’t likely, most forecasters predict a gradual decline in mortgage rates as the broader economy stabilizes. Even a small decrease in rates can reduce monthly payments and improve affordability for both first-time buyers and those looking to upgrade or relocate.
The takeaway: Trying to “time the market” perfectly isn’t realistic, but lower rates could offer more breathing room in your budget by year-end.
2. More Inventory Means More Choice
This year has already seen a rise in active listings as many homeowners who held off during rate hikes are now ready to sell. Experts suggest that inventory levels will continue to climb, giving buyers more options and reducing the intensity of bidding wars.
As Lance Lambert from ResiClub puts it:
“The fact that inventory is rising year-over-year strongly suggests that national active housing inventory for sale is likely to end the year higher.”
Locally here in Ontario, we’re already seeing this trend unfold in areas like Brantford, Cambridge, and Kitchener—where new listings are slowly helping to balance out demand.
3. Home Prices Are Still Rising—but More Gradually
Housing prices are still appreciating in most regions, but the rate of growth is beginning to cool. Forecasts from top economists show an average national price increase of about 2% for the year, which is a much more balanced pace compared to the rapid surges we’ve seen in past years.
This more stable environment is creating an opportunity for buyers who may have felt priced out during the peak of the market.
What This Means for You
Overall, the second half of 2025 is shaping up to offer more balance for both buyers and sellers.
Let’s Talk
Want to know what’s happening in your specific area—or how these changes could work in your favour?
Let’s connect and walk through your options with confidence.
The good news is that leading real estate experts are beginning to release updated forecasts for the second half of the year. And overall? It’s looking a lot more promising than some headlines suggest.
According to Business Insider,
“As mortgage rates go down this year, affordability may improve slightly for homebuyers. Inventory is also expected to grow, which should help moderate price growth and make finding a home easier.”
Let’s break it down:
1. Mortgage Rates Are Expected To Ease (Slightly)
While a dramatic rate drop isn’t likely, most forecasters predict a gradual decline in mortgage rates as the broader economy stabilizes. Even a small decrease in rates can reduce monthly payments and improve affordability for both first-time buyers and those looking to upgrade or relocate.
The takeaway: Trying to “time the market” perfectly isn’t realistic, but lower rates could offer more breathing room in your budget by year-end.
2. More Inventory Means More Choice
This year has already seen a rise in active listings as many homeowners who held off during rate hikes are now ready to sell. Experts suggest that inventory levels will continue to climb, giving buyers more options and reducing the intensity of bidding wars.
As Lance Lambert from ResiClub puts it:
“The fact that inventory is rising year-over-year strongly suggests that national active housing inventory for sale is likely to end the year higher.”
Locally here in Ontario, we’re already seeing this trend unfold in areas like Brantford, Cambridge, and Kitchener—where new listings are slowly helping to balance out demand.
3. Home Prices Are Still Rising—but More Gradually
Housing prices are still appreciating in most regions, but the rate of growth is beginning to cool. Forecasts from top economists show an average national price increase of about 2% for the year, which is a much more balanced pace compared to the rapid surges we’ve seen in past years.
This more stable environment is creating an opportunity for buyers who may have felt priced out during the peak of the market.
What This Means for You
Overall, the second half of 2025 is shaping up to offer more balance for both buyers and sellers.
- Slightly better mortgage rates
- More homes on the market
- Slower price growth
Let’s Talk
Want to know what’s happening in your specific area—or how these changes could work in your favour?
Let’s connect and walk through your options with confidence.
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