The Best Place to Work, Buy & Sell Real Estate

A significant number of Canadian adults, approximately 13%, are planning to buy their first home within the next two years. This shows a growing interest in homeownership, spurred by relatively favorable market conditions such as lower interest rates, rising property inventories, and softening prices. Although many prospective buyers are actively researching, viewing listings, and even attending showings, there’s still a sense of hesitation. Despite these promising factors, economic uncertainty and potential future interest rate cuts have caused many to delay their decisions further.

A large portion of first-time buyers is prioritizing sizable down payments, with over half planning to put down 20% or more. This preference for larger upfront payments might stem from the desire to secure better mortgage terms or avoid mortgage insurance. Meanwhile, 39% of buyers are opting for smaller down payments, reflecting a more cautious approach considering the high costs associated with homeownership. This diversity in down payment strategies underscores the financial challenges many are facing as they try to enter the housing market.

Detached homes remain the most desired type of property among first-time buyers, with nearly half expressing a preference for this housing style. The desire for single-family detached homes may be driven by factors like the need for more space, privacy, and the appeal of owning land, despite the higher costs associated with such properties. Additionally, a significant number of buyers are considering the lifestyle aspects of their purchase, with 42% willing to commute longer distances if it means securing a home in a neighborhood that suits their personal preferences.

Affordability remains a key concern for many buyers, with 60% of first-time purchasers seeking homes in more affordable neighborhoods. To make homeownership more accessible, some buyers are opting to downsize their expectations or make cuts to discretionary spending. A notable number are also drawing from retirement or investment savings to fund their purchases, further highlighting the strain that rising property prices have placed on the ability to save for a down payment. These strategies reflect the adjustments prospective buyers are making in response to the current market dynamics.

Financial support from family and friends is a crucial factor for many first-time buyers. While a majority (51%) will not receive any assistance, 41% are expecting some form of financial help. This assistance may come in various forms, including lump-sum gifts, loans, or even co-signing. The reliance on family support highlights the affordability challenges many individuals face when trying to purchase a home, and it draws attention to the role that generational wealth and financial assistance play in today’s real estate market. It also suggests that without such support, homeownership may remain out of reach for a significant portion of the population.

When planning a home renovation, many homeowners assume that permits are only needed for large-scale projects like building an addition or creating a rental suite. However, in much of Canada, even seemingly small or DIY projects may require a permit. Homeowners should be aware of local regulations before starting any renovation, as failure to obtain a permit could lead to costly consequences. Permits play an important role in maintaining safety, protecting property value, and ensuring that construction meets local zoning rules and building codes.

The need for permits goes beyond just compliance; it is crucial for safety and structural integrity. Permits help ensure that construction projects adhere to local health, fire, and safety standards, reducing risks for homeowners, their families, and the broader community. These safeguards are designed to prevent accidents or structural failures. Furthermore, getting a permit ensures that the project will be properly inspected, making sure the work is up to code, whether it's electrical, plumbing, or HVAC-related. Permits also help to avoid conflicts with local zoning laws, which dictate things like the maximum allowable size of a building or how far an addition must be from a property line.

Renovations that typically require permits include major changes like adding new stories to a home, building extensions, or altering the structure of a building. These types of projects can affect the home’s safety and integrity, which is why they are closely regulated. Changes to plumbing, electrical, or HVAC systems usually require permits, as well as the construction of new structures like garages, sheds, or even large decks and pools. Homeowners should also be aware that demolishing parts of their property or changing the foundation may also require permits. In contrast, minor cosmetic renovations—like painting, changing fixtures, or replacing flooring—usually do not need a permit.

The rules for permits can vary greatly depending on the municipality or province. While some areas might require permits for projects such as building a fence or enlarging a deck, others may have stricter or more lenient rules. Some municipalities even require permits for smaller structures like sheds or treehouses, especially if they exceed a certain size. These local regulations can be surprising to even seasoned homeowners, so it's always important to check with the local building department before proceeding. Even if a project seems straightforward, failing to confirm permit requirements could lead to problems down the road.

The process for obtaining a permit is relatively straightforward, but homeowners should take care to ensure they follow the proper steps. Most municipalities have dedicated permit offices or building departments, where homeowners can apply for the necessary permits. These offices can also provide guidance on which types of renovations require permits. It's advisable to consult with local authorities or a contractor to ensure all permits are in place before construction begins. If permits are not obtained and construction proceeds, the consequences can be severe, including fines, forced demolition, and issues with home insurance. In some cases, unpermitted work can even impact property sales or financing, making it essential to address permit requirements early in the renovation process.

With the Bank of Canada recently lowering its overnight benchmark rate by 25 basis points, homeowners renewing their mortgages may now have an opportunity to secure better terms. The central bank’s key rate influences commercial lenders, including private banks, which set their rates based on this benchmark. According to the Bank of Canada’s research, 60% of Canadian mortgages will come up for renewal between 2025 and 2026, making this a key period for homeowners to evaluate their options.

Variable-rate mortgages are directly impacted by changes in the central bank’s interest rates. After the recent rate cut, some variable rates have dropped by up to 30 basis points, with certain lenders offering rates below 4%. Experts suggest that homeowners eyeing a variable rate should act quickly to lock in a rate hold, as many lenders offer rate holds of up to 120 days. While some might consider waiting for additional rate cuts, locking in a good rate now can protect against future rate hikes.

However, choosing a variable-rate mortgage comes with its own risks. While these loans may seem attractive due to lower rates, it’s important to remember that once the central bank finishes cutting rates, it will eventually begin to raise them again. For homeowners who prefer stability and predictability, a fixed-rate mortgage may be a better choice. Fixed rates are also available under 4% and offer more security over the life of the loan, despite being less flexible than variable rates. Ultimately, the best option depends on individual financial goals and housing plans.

For homeowners who plan to move within the next few years, a variable-rate mortgage may offer more flexibility, as it generally has lower penalties for early termination. This makes it an appealing option for those who foresee a change in their living situation. On the other hand, if you’re staying in your home for the long term, locking into a fixed-rate mortgage can provide the predictability needed for financial stability. Regardless of the mortgage type, experts recommend shopping for a new mortgage at least four months before your renewal date to ensure you’re getting the best deal.

One of the biggest pitfalls homeowners face during mortgage renewal is sticking with their current lender out of convenience. Many Canadians simply accept the renewal offer from their bank, which often isn’t the most competitive. Research shows that 69% of homeowners stay with their existing lender when renewing, but this can cost them, as lenders typically reserve the best rates for new clients. With recent changes making it easier to switch lenders, exploring other options can save homeowners thousands of dollars over the life of the mortgage. It's worth considering a fresh look at the market to secure the most competitive rate available.

In August 2025, home sales in Canada increased by 1.1% from the previous month, marking the best August performance since 2021. This growth extended a five-month upward trend, totaling a 12.5% increase since March. While sales in one major region dropped slightly, gains in other key markets more than offset the decline, contributing to the overall national increase.

The rise in sales was largely driven by an influx of new listings, a common trend at the start of fall. With many buyers returning to the market and potentially benefiting from favorable interest rates, further growth in sales is expected in the coming months.

National home sales were up 1.1% month-over-month, with a 1.9% increase compared to August 2024. New listings also grew by 2.6%, while home prices saw minimal change, with the HPI down 0.1% month-over-month but up 1.8% year-over-year. The national average sale price reached $664,078, reflecting a 1.8% rise from the previous year.

Despite an increase in new listings, the sales-to-new listings ratio dropped slightly to 51.2% in August, signaling a shift toward a more balanced market. The total number of properties listed was up 8.8% from a year ago, aligning with long-term averages.

Inventory levels at the end of August stood at 4.4 months, slightly below the long-term average of five months. Home prices are expected to continue stabilizing, with year-over-year declines shrinking in the months ahead.

Housing construction in Alberta, particularly in Calgary and Edmonton, is at an all-time high, outpacing the rest of the country. New data indicates that the number of new homes being built in these two cities is more than double that of Toronto and surpasses other major Canadian cities. While the surge in construction is noteworthy, some industry experts are skeptical that these new builds will lead to lower home prices, as many have hoped.

A key factor behind this construction boom is the influx of people moving to Alberta, drawn by its more affordable housing compared to other provinces. However, the increased demand has put strain on the housing supply, causing prices to rise despite the increased number of new developments. High construction costs are adding to the problem, making it difficult for builders to offer affordable housing options. The rapid growth in prices is not just due to a shortage of homes, but also to increased labor and material costs, along with stagnant wage growth that hasn’t kept pace with inflation.

Another significant trend in the housing market is the growing demand for rental units, which has been driving much of the new construction in both Calgary and Edmonton. As homeownership becomes more challenging for many residents, rental demand has surged. This shift is leading to more rental units being built, but it also underscores the ongoing struggle for affordable housing, as rental prices have climbed sharply in recent years. In contrast, cities like Toronto and Vancouver are seeing a slowdown in construction, with fewer new projects and a drop in condominium builds due to falling investor interest.

To combat the housing shortage, both Calgary and Edmonton have made efforts to rezone certain areas to increase density. The idea is to allow for more homes in existing neighborhoods, but this approach has sparked controversy. Some residents have contested the changes, with legal challenges even reaching the highest provincial courts. As municipal elections approach, candidates in both cities are debating whether to revise or even undo some of these rezoning efforts. Though the goal of increasing density might help alleviate some of the housing pressure, it has not always resulted in lower home prices, as the cost of development remains high.

Despite the increase in construction activity, housing affordability continues to be a major challenge. Even though more homes are being built to accommodate growing demand, particularly from both domestic and international migrants, prices remain high due to escalating construction costs and the limited supply of affordable options. Developers are largely responding to the demand for single-family homes rather than speculative building, and while there may be a stabilization in the market, drastic price reductions are unlikely in the foreseeable future. Ultimately, while building more homes is part of the solution, it alone won't resolve the affordability crisis that continues to affect Alberta's housing market.

The ongoing debate over Canada's ban on foreign homebuyers, initially introduced in 2023 and extended for an additional two years in February 2024, has stirred up considerable discussion within the mortgage industry. The federal government implemented the ban with the intention of easing home availability for Canadian residents, claiming that restricting foreign ownership would lead to more housing opportunities. However, as the housing market continues to face a slowdown, many within the sector are questioning whether the policy has had the desired effect or if it may be contributing to further complications in the housing sector.

A July 29 open letter directed at the government by a group of Canadian business and real estate leaders highlighted the concerns of those impacted by the ban. The letter argued that the policy was counterproductive, placing undue pressure on home construction, risking job losses, and exacerbating the existing affordability crisis. The call to reassess the ban also included a recommendation for the provincial government of British Columbia to reconsider its tax on foreign buyers, which had provoked a firm response from provincial officials determined to avoid a return to overheated markets fueled by foreign investment.

In early 2024, the federal government extended the ban on foreign homebuyers until 2027. This decision was backed by officials who emphasized that the restriction would help manage affordability issues and increase the housing supply for Canadian buyers. However, critics have suggested that the ban's impact on the housing market has been minimal. Some industry experts pointed out that while the policy may have limited the number of foreign buyers, luxury home prices have largely remained stable, showing that the ban has had little effect on addressing the broader housing affordability challenges faced by Canadians.

Statistics on foreign ownership support this view, with data indicating that foreign buyers represented just about 1% of the housing market in 2024, down from 2-3% in previous years. The impact of foreign buyers is primarily seen in high-end markets in major cities like Toronto, Vancouver, and Montreal, which does little to alleviate the pressure on first-time homebuyers in need of affordable options. The decline in foreign ownership coincides with a drop in immigration, which has historically helped fuel demand for housing in Canada.

Despite mixed opinions from industry experts, public support for the foreign buyer ban remains strong. Surveys show that a significant majority of Canadians, including a wide range of political affiliations, continue to support the federal ban on foreign real estate purchases, which is set to remain in effect until 2027. Some economists and real estate experts suggest potential alternatives, such as allowing foreign buyers to purchase only newly built homes, which could help stimulate investment without further inflating resale prices. This approach may also provide relief to developers struggling with stalled projects, offering them a chance to move forward with much-needed housing construction.

In August, the Greater Toronto housing market showed signs of strain, despite a slight uptick in buyers. Although sales saw a modest year-over-year increase, overall demand remains historically low and far from stabilizing. At the same time, a surge in new listings led to record-high inventory levels, putting downward pressure on prices. The imbalance between supply and demand has intensified, making it clear that the market is still struggling to recover.

Home prices continued their descent, with the average price of a typical home falling by over $11,000 in August alone. This marks one of the largest monthly drops in the past year and contributes to a broader downward trend. Prices have now fallen more than 24% from their early 2022 peak, showing just how far the market has retreated from the high point of the recent boom. The pace of decline is concerning for both sellers and industry observers hoping for a turnaround.

Despite a slight year-over-year rise in sales, overall activity remains very weak by historical standards. Sales in August were among the lowest in the past quarter-century for that month, surpassed only by last year’s even lower figures. The scale of the gap between current and normal levels is staggering sales would need to more than double just to match more typical pre-pandemic volumes. Without a significant shift in market conditions, a return to those levels seems unlikely.

Inventory growth has become one of the defining features of the current market. New listings continue to rise rapidly, bringing total active listings to their highest level on record for the month of August. The pace of this increase has been dramatic, pushing inventory levels to nearly triple what they were just a few years ago. This glut of supply is putting additional pressure on sellers, many of whom are struggling to compete in a saturated market.

While some may take comfort in the small rise in sales, it does little to offset the overwhelming growth in inventory. The imbalance suggests that the market is still in correction mode, especially with more supply expected as new construction projects are completed. Many of these new units were purchased by investors, some of whom may now be forced to sell due to underperforming rental yields. As this trend continues, the regional market could further drag down national housing figures, especially in areas that haven’t yet felt the full weight of the correction.

For years, home ownership in Canada's largest housing markets seemed like an unattainable dream, especially for first-time buyers in cities like Toronto and Vancouver. Prices soared to all-time highs, and interest rates made securing a mortgage a challenge for many. However, recent shifts in the market are offering a glimmer of hope. As interest rates stabilize and property prices remain relatively low, prospective buyers are beginning to re-enter the market. According to real estate experts, this could be one of the best times in years for first-time buyers to make a move.

Many professionals describe the current situation as a "buyer's market," particularly for those interested in purchasing condos. The key difference now is that buyers have more bargaining power and ample time to explore their options. With a high supply of properties and less urgency in the market, buyers are no longer under the pressure to act quickly, as they were in previous years. In cities like Toronto, what used to be an unaffordable option, like a small condo priced at $600,000, is now offering decent one-bedroom units. In some cases, even moving slightly outside the city can offer buyers the opportunity to purchase larger homes, like three-bedroom properties.

While many are optimistic about the market conditions, some experts caution that potential buyers shouldn't feel rushed. There's no immediate pressure to "buy now or never," as home prices are unlikely to spike dramatically as they did in previous years. Economic uncertainties, like ongoing trade tensions and interest rate fluctuations, suggest that homebuyers still have time to carefully consider their choices. Real estate analysts believe that the next several months will bring more clarity to the market, and buyers can afford to take a measured approach instead of rushing into a decision.

The Canadian real estate market experienced significant volatility over the past few years, with home prices peaking in early 2022 before seeing a sharp decline. Between February 2022 and mid-2023, the average price of a home in Canada dropped by nearly $150,000. However, as interest rates decreased in late 2024, the market began to stabilize, and there's now a noticeable uptick in home resell activity across the country. While there's still some caution in the air, the rebound of pent-up demand points to a potential market turning point, especially in Ontario and British Columbia.

For first-time buyers, however, the picture isn't so clear-cut. While lower interest rates and more supply have improved affordability in some markets, the reality of rising prices in certain regions like Saskatchewan, Winnipeg, and parts of Atlantic Canada still poses challenges. Even in Toronto, where one-bedroom condos are more affordable than before, the need for a substantial income to secure a mortgage remains. With a 20% down payment on a $600,000 property, a potential buyer would need to earn at least $100,000 annually. Additionally, beyond the cost of the mortgage, there are property taxes, maintenance fees, and insurance to consider, making it essential for first-time buyers to weigh all financial aspects carefully before taking the plunge.

Improved housing supply has shifted Calgary’s real estate market, contributing to price declines across several property types. Apartment and row-style homes have seen the most notable reductions due to significant increases in available inventory, while detached and semi-detached homes have experienced more modest pricing changes. As of August, the city’s total residential benchmark price dropped to $577,200—down from the previous month and nearly four per cent below the same period last year.

Sales activity in August totaled 1,989 transactions, representing a nine per cent decline year-over-year. Despite this drop, demand remains stronger than long-term averages. However, a surge in new listings has pushed total inventory to 6,661 units—the highest level for August since 2019. The resulting sales-to-new-listings ratio sits below 60 per cent, indicating a shift toward more balanced market conditions and away from the sellers’ market dominance of recent years.

Detached homes saw a softening in sales and a rise in new listings, particularly in areas like the North East, where buyer market conditions are emerging. Inventory in this segment reached its highest August level since 2020. The benchmark price for detached homes declined to $755,600—down nearly one per cent from both the previous month and the previous year. While the North East and East districts experienced the steepest declines, the City Centre recorded continued price growth.

In contrast, the semi-detached and row housing segments showed mixed results. Semi-detached homes held relatively tighter market conditions, with fewer new listings and a sales-to-new-listings ratio of 67 per cent. This helped limit inventory growth and kept prices more stable. The benchmark price for semi-detached properties stood at $687,200—slightly below last month but still one per cent higher than last year. Meanwhile, row homes continued to face rising inventory and weakening sales, pushing prices down for the fourth month in a row. August’s benchmark price for row homes dropped to $439,600, nearly five per cent lower year-over-year.

The apartment condominium market has been the most impacted by the increase in supply. Inventory rose to a record 1,979 units in August, and the sales-to-new-listings ratio fell to just 51 per cent. These supply pressures led to five straight months of price declines, with the benchmark apartment price falling to $326,500—almost six per cent below last year’s level. The North East district experienced the steepest price decline at over 11 per cent, followed by smaller drops in the City Centre and West districts.

Airdrie is also adjusting to shifting market conditions. Sales in August fell to 152 units, contributing to a 12 per cent year-to-date decline. Meanwhile, 265 new listings pushed the sales-to-new-listings ratio to 57 per cent, keeping inventory growth in check. With 535 active listings—the highest level since before the pandemic—the market has moved toward balanced conditions. However, increased supply has placed downward pressure on prices, with the benchmark price falling to $531,100, down four per cent from last August.

Cochrane experienced 70 sales in August, while 139 new listings entered the market. The resulting 50 per cent sales-to-new-listings ratio is the lowest for August since 2015. Although inventory levels didn’t change significantly, months of supply rose above four. Despite this, benchmark prices remained stable at $589,100—similar to July’s figure and nearly two per cent higher year-over-year. On a year-to-date basis, prices in Cochrane are up by four per cent compared to last year.

Okotoks showed stronger seller conditions in August, as new listings declined significantly while sales remained steady. The sales-to-new-listings ratio surged to 80 per cent, limiting inventory growth. Although inventory levels are 29 per cent higher than last year, they remain 30 per cent below typical August levels. These tighter conditions helped support prices, with the year-to-date benchmark remaining two per cent higher than in 2024. However, some minor monthly price declines were observed.