January 17, 2025 | Uncategorized
2025 Real Estate Predictions: Rate Cuts, Rising Prices, and Market Shifts

As we welcome 2025, the Ontario real estate market—especially in Burlington, Oakville, the GTA, and Hamilton—is poised for a transformative year. Driven by economic trends, anticipated mortgage rate cuts, and renewed buyer demand after two subdued years (2023 and 2024), our local communities continue to attract families, professionals, and investors seeking the perfect balance of lifestyle and opportunity.
Market Predictions for 2025
1. Price Growth
Canada’s housing market is forecasted to experience steady price growth in 2025:
- The Canadian Real Estate Association (CREA) predicts a 4.4% increase nationally.
- TD Economics projects an even higher rise at 8%, with 6.4% growth in Ontario.
Closer to home, Burlington and Oakville saw detached home prices increase by 4.2% and 3.7%, respectively, in 2024. Looking back, home prices across our region have grown +31% over the past five years, despite a dip in 2023 when higher rates tempered the market.
With the anticipated interest rate cuts, buyers who delayed purchasing during the past two years are likely to re-enter the market. This resurgence in demand, coupled with lower borrowing costs, is expected to support continued price growth in 2025.

2. Lower Interest Rates
The Bank of Canada is projected to reduce interest rates by 1% to 1.25% in 2025, aiming to stimulate economic growth. Lower borrowing costs will boost buyer confidence and purchasing power, driving increased activity in both entry-level and move-up markets.
This rate environment presents a favourable opportunity for those considering a home purchase or looking to refinance existing mortgages.

3. Political and Economic Impacts
Two key political developments could shape the real estate landscape this year:
- Federal Election: A potential spring election could bring a shift in leadership. A Conservative-led government may implement spending cuts, tax reductions, and measures to boost investor confidence, improving overall economic conditions.
- U.S. Tariffs: Proposed tariffs of 25% on Canadian goods by President-elect Trump could impact the economy. While these tariffs may be temporary or reduced, a prolonged trade dispute could lead to economic slowdown and recessionary pressures, possibly driving interest rates even lower.
How to Prepare for Your 2025 Move
Navigating today’s competitive market requires expert guidance. Whether buying or selling in Burlington, Oakville, or Hamilton, the right strategy can make all the difference.
At Urban Group Realty, we combine in-depth local market knowledge with a proven track record to help you achieve your real estate goals.
Contact us today for a no-obligation consultation, and let us help you take advantage of the opportunities 2025 offers.
Stay Ahead of the Market
For detailed insights, charts, and a breakdown of 2025 predictions, click below:
[View the Full Report]
Let’s make 2025 your best real estate year yet!
Ryan Urban
Broker, Urban Group Realty
BA Economics, HBA Ivey Business School







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