Home listings surge across Canada. Is this the best time to buy?
Canada’s housing market began the year with a sharp rise in new listings, while home sales slowed, creating a more balanced market. According to the latest data from the Canadian Real Estate Association (CREA), newly listed homes increased by 11% in January compared to December 2024—the largest monthly increase outside of pandemic-related fluctuations since the late 1980s. At the same time, national home sales declined by 3.3% compared to the previous month.
The national sales-to-new listings ratio fell to 49.3%, indicating a shift in market conditions that could benefit homebuyers. “The standout trends to begin the year were a big jump in new supply at an uncommon time of year, as well as a weakening in sales which only showed up around the last week of January,” said Shaun Cathcart, CREA’s senior economist.
“The timing of that change in demand leaves little doubt as to the cause – uncertainty around tariffs. Together with higher supply, this means markets that had been steadily tightening up since last fall are now suddenly in a softer pricing situation again, particularly in British Columbia and Ontario.”
Home prices remain steady
Despite shifting market dynamics, home prices showed little movement. The MLS® Home Price Index (HPI) was virtually unchanged on both a monthly (-0.08%) and yearly (+0.07%) basis. The non-seasonally adjusted national average sale price in January 2025 was $670,064, reflecting a modest 1.1% increase from the same period last year.
Buyers gain more leverage
With more properties available and softer price growth, experts suggest homebuyers now have greater negotiating power. Mortgage broker and LowestRates.ca expert Leah Zlatkin noted that the current environment allows buyers to negotiate price adjustments, request seller concessions, and include protective conditions such as home inspections or financing clauses in their offers.
Zlatkin also advised caution regarding mortgage choices: “Economic fluctuations can trigger interest rate volatility, potentially swinging rates in either direction. This inherent unpredictability makes variable rate mortgages a considerable gamble. Given this economic climate and to best manage risk, I generally advise homebuyers to favour short-term fixed-rate mortgages.”
While a more active spring market is expected, the looming threat of a trade conflict with the United States could weigh on buyer sentiment. CREA chair James Mabey emphasized that while some may hesitate due to economic uncertainty, lower interest rates and a more balanced market present opportunities for others.
Source CMP
By Jonalyn Cueto
