{"id":40616,"date":"2025-08-02T14:05:11","date_gmt":"2025-08-02T14:05:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/40616\/"},"modified":"2025-08-02T14:05:11","modified_gmt":"2025-08-02T14:05:11","slug":"canadas-housing-market-is-in-new-normal-it-looks-like-the-old-normal-national","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/40616\/","title":{"rendered":"Canada\u2019s housing market is in \u2018new normal.\u2019 It looks like the \u2018old normal\u2019 – National"},"content":{"rendered":"

With the Bank of Canada holding interest rates<\/a> again, economists and real estate experts say the housing<\/a> market\u2019s \u201cnew normal\u201d may be looking more and more like the \u201cold normal\u201d from before the COVID-19 pandemic.<\/p>\n

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\u201cWhat we have now with more supply in the market, like more inventory, homes for sale, and this is what I would consider a little bit more \u2014 not everywhere in Canada \u2014 but generally speaking more return to the old normal before the pandemic,\u201d said Robert Hogue, assistant chief economist at RBC.<\/p>\n

\u201cActually, probably a lot more before the pandemic with a bit more time for buyers to make decisions.\u201d<\/p>\n

Much of the original hesitation from buyers waiting to enter the market in early 2025 was due to the uncertainty of looming and implemented tariffs by the U.S., Hogue said.<\/p>\n

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He added in the months since, the perspectives of Canadians have changed and the lack of \u201cdoom and gloom\u201d is bringing back some homebuyers.<\/p>\n

National home sales rose 2.8 per cent in June, building on a 3.5-per cent rise in May, the Canadian Real Estate Association (CREA) said earlier this month.<\/p>\n

However, the CREA\u2019s senior economist, Shaun Cathcart, cautioned while homes sales saw a boost \u2014 including a 17.3-per cent rebound in the Greater Toronto Area since April \u2014 the national picture is a \u201ccarbon copy\u201d from May sales figures.<\/p>\n

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Hogue notes that positivity and growing confidence will benefit the housing market in the long-term, especially as RBC does not expect any further rate cuts.<\/p>\n

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There are still some challenges, such as continued U.S. uncertainty, but he said some energy is returning.<\/p>\n

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\u201cWhat we\u2019ve seen in recent months is a return to that recovery is still very kind of gentle, just more of a turning point taking place,\u201d he said.<\/p>\n

\u201cBarring any major bad news on the trade front that would send more kind of ice cold water on expectations and confidence, we should see that recovery going forward.\u201d<\/p>\n

Some mortgage brokers in Canada say despite concerns over U.S. tariffs and the economy, they\u2019re still seeing people entering the market.<\/p>\n

\u201cEvery mortgage broker that I speak to is busy right now because house prices are high, interest rates aren\u2019t great but people are still buying,\u201d said Hannah Martens, mortgage broker and president of the Canadian Mortgage Brokers Association Atlantic.<\/p>\n

\u201cI really do feel that even though we aren\u2019t in a perfect market right now, and I don\u2019t think there will ever be a perfect market, people, if they\u2019re ready, then should come into the market whenever they\u2019re ready.\u201d<\/p>\n

\t\t\t\tAffordability remains a ‘psychological’ block\n\t\t\t\t\t\t<\/p>\n

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Even with Canadians trying to buy their first or a new home, there are still barriers and affordability may be a key factor.<\/p>\n

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\u201cWe still have affordability issues, but I think even for those who have the ability to purchase right now, they\u2019re not. We need them to pull the trigger,\u201d said Mary Sialtsis, a licensed mortgage broker in Ontario.<\/p>\n

\u201cMaybe it does take the Bank of Canada to start dropping the prime lending rate because it is that psychological impact, because I do have buyer clients out there actively shopping right now, but they\u2019re not actually pulling the trigger and making an offer.\u201d<\/p>\n

Sialtsis said what may be needed even more is an adjustment of expectations.<\/p>\n

\u201cI know that some of the buyers that are out there shopping are just thinking, \u2018Well, you know, I\u2019ll wait until I can get a better deal,\u2019 and it starts to become unreasonable,\u201d she said.<\/p>\n

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\u201cFor sellers, I really think they need to adjust their expectations and they need to, I\u2019m sure their realtors are advising them of what comparable sales are in their neighbourhood, they need to adjust their expectations accordingly.\u201d<\/p>\n

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Canadians hoping for low mortgage rates seen during the COVID-19 pandemic may be out of luck, but Royal LePage\u2019s Anne-Elise C. Allegritti said some people appear to be realizing this.<\/p>\n

\u201cI think Canadians have adapted to this sort of, being roughly the new normal in terms of borrowing rates. Could they go down a little bit more, sure, but I don\u2019t think anyone is expecting them to reach those rock-bottom rates that we saw during COVID and that\u2019s a good thing,\u201d said Allegritti, director of research and communications at Royal LePage.<\/p>\n

\u201cI think sometimes our perspective can be skewed because of this extreme that we experienced not too long ago and this feels now like the opposite extreme, but it really is a leveling off.\u201d<\/p>\n

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\n\t\t&copy 2025 Global News, a division of Corus Entertainment Inc.\t<\/p>\n","protected":false},"excerpt":{"rendered":"With the Bank of Canada holding interest rates again, economists and real estate experts say the housing market\u2019s…\n","protected":false},"author":2,"featured_media":40617,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[84,626,1319,4658,15187,4813,467,56,54,55],"class_list":{"0":"post-40616","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-business","9":"tag-canada","10":"tag-consumer","11":"tag-housing","12":"tag-housing-market","13":"tag-interest-rate","14":"tag-markets","15":"tag-uk","16":"tag-united-kingdom","17":"tag-unitedkingdom"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/40616","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=40616"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/40616\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/40617"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=40616"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=40616"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=40616"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}