2025 Market Kickoff: Politics and Real Estate

Good morning,

Welcome to the first RealEdge newsletter of 2025! As we step into the new year, we’re diving into the political and statistical factors that are shaping the Canadian real estate market. From economic policies to market trends, this issue will provide the insights you need to stay ahead in a dynamic landscape.

In Today’s Newsletter

1️⃣ December 2024 Market Watch
2️⃣ Canadian Political Developments Shaping Real Estate
3️⃣ U.S. Political Influence on Real Estate
4️⃣ Looking Ahead: 2025 Predictions

📊 December 2024 Market Watch

Toronto Regional Real Estate Board (TRREB)

• Market Trends: 2024 concluded with a 2.6% increase in annual sales compared to 2023. New listings rose by 16.4%, reflecting increased activity despite economic headwinds.

• Average Price: The December average selling price was $1,067,186, holding steady compared to December 2023.

• Segment Insights: Detached and ground-oriented homes performed better, while condominium sales declined due to affordability challenges for first-time buyers.

• Outlook: With additional interest rate cuts anticipated, the detached housing market is expected to strengthen in 2025. The condo market may remain subdued until 2026.

Durham Region

• Market Trends: Durham saw a 6.2% increase in transactions compared to 2023. New listings climbed 14.5%, while the average selling price dipped by 1.48%.

• December Highlights: The average price rose to $930,207, a notable increase from December 2023. Detached homes experienced 10.2% price growth, fuelled by limited supply.

🇨🇦 Canadian Political Developments Shaping Real Estate

1️⃣ Affordability Initiatives:

• 30-Year Amortization Periods: Extended for first-time buyers and purchasers of new builds, reducing monthly payment burdens on Canadians.

• Insured Mortgage Cap: Increased from $1 million to $1.5 million, expanding accessibility in higher-priced markets (Financial Post).

2️⃣ Housing Supply Boost:

• The federal government plans to construct 3.87 million homes by 2032, with tax incentives for green buildings driving new developments (Global News).

3️⃣ Immigration Policy Shifts:

• Adjusted immigration targets could moderate housing demand, particularly in rental markets, while still supporting population growth in urban hubs (CREA).

🇺🇸 U.S. Political Influence on Real Estate

2024 Election Fallout

• Housing Policy Uncertainty: New administration policies could alter construction costs and labor supply due to changes in tariffs and immigration policies (NBC News).

Project 2025:

• Proposals from conservative think tanks emphasize local zoning control and mid-tier rental unit construction over affordable housing (Planetizen).

Top Issues for 2025:

• Political uncertainty is listed among the top factors influencing real estate, with shifts in U.S. housing policies potentially affecting cross-border investment (NAR).