The chill in Canada’s housing market could be thawing sooner than expected. Interest rates are dropping, pent-up demand is building, and sales are starting to heat up. A potentially electrifying set of mortgage rules just went into effect, which could be a game changer for buyers and sellers in Saskatoon.
So, what can we expect in the coming year? Here’s our take on the 2025 outlook for the Saskatoon real estate market.
Mortgage Rates Are Expected to Continue Falling
In December, the Bank of Canada announced a 0.5% cut to its benchmark interest rate, the first decrease since 2020. This move was aimed at stimulating economic growth and encouraging borrowing. As a result, mortgage rates have begun to decline, making home loans more affordable for buyers.
Economists predict that the Bank of Canada will implement additional rate cuts throughout 2025, potentially bringing the benchmark rate down by another 1%. This trend could lead to even lower mortgage rates, further boosting the housing market in Saskatoon.
Pent-Up Demand Is Driving Sales
Over the past few years, many potential buyers were sidelined due to high home prices and rising interest rates. However, with the recent drop in mortgage rates and a slight cooling of home prices, these buyers are now entering the market.
In Saskatoon, we’ve already seen a 15% increase in home sales compared to this time last year. This surge is expected to continue as more buyers gain confidence in the market and take advantage of favorable conditions.
New Mortgage Rules Could Boost Affordability
The federal government recently introduced new mortgage regulations aimed at increasing housing affordability.
Extended Amortization Period: The maximum amortization period for insured mortgages has been increased from 25 to 30 years, lowering monthly payments for buyers and making homeownership more accessible.
First-Time Home Buyer Incentive: The government has increased this incentive, providing eligible buyers with a larger shared equity loan to put toward their down payment.
These changes are expected to help more first-time buyers enter the Saskatoon real estate market.
What Does This Mean for Buyers and Sellers in Saskatoon?
For Buyers: The combination of lower mortgage rates, increased affordability due to new regulations, and more inventory hitting the market presents a unique opportunity. However, with more buyers entering the market, competition could become fierce, especially for desirable properties in Saskatoon’s sought-after neighborhoods.
For Sellers: Increased demand means it’s an excellent time to sell your property. To attract motivated buyers, pricing your home competitively and ensuring it’s in top condition will be key.
Looking Ahead
While the Saskatoon real estate market is showing signs of heating up, it’s important to approach the coming year with cautious optimism. Economic conditions can change, and unforeseen factors could impact the housing market.
Working with an experienced real estate professional like Cindy Savino can help you navigate the evolving market, whether you're buying or selling.
Ready to Make Your Move in 2025?
If you have questions about the Saskatoon real estate market or are considering buying or selling a home this year, don’t hesitate to reach out to Cindy Savino, your trusted REALTOR® in Saskatoon.
📞 Call Cindy at (306) 222-2207
📧 Email Cindy at cindysavino@sasktel.net
Let Cindy’s 25+ years of experience guide you through Saskatoon’s dynamic real estate market and make your next move your best one.
Sources:
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MPA Magazine – https://www.mpamag.com/ca/mortgage-industry/market-updates/rbc-economist-sees-housing-market-recovery-picking-up-pace/516993
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Desjardins – https://www.desjardins.com/qc/en/savings-investment/economic-studies/housing-outlook-october-31-2024.html
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