While too early to call it a sales trend, based on higher sales activity in October and November compared to the same time period in 2023, there are early indications that buyer sentiment is at least starting to shift in our market.

Lower interest rates (with the expectation of further rate decreases to come) are encouraging more buyers to dip their toes back into the market.

But it is not quite time for sellers to pop the champagne quite yet. Buyers are still taking their time making decisions, and homes must be priced right to get offers. I listed one home last month where we ended up with 7 offers – so buyers are definitely out there.

While buying activity has picked up somewhat, new listing activity has definitely fallen compared to the same time last year, resulting in an overall decrease of homes for sale.

Having said that, many of the homes currently for sale have been on the market for extended periods of time as buyers wait for those sellers to lower prices. Most new listings coming to market at the right price are selling fairly quickly.

Based on what I am seeing on the ground, there are more market indicators here in the last quarter of 2024 suggesting that we are going to see higher sales AND listing activity in 2025 compared to 2024.

We may also see somewhat of an uptick in pricing in the spring, but I am still predicting limited overall price growth in 2025 notwithstanding the increase in activity.

One observation of note is that condos under $700,000 are starting to sell after an extended lull – while sales over $700,000 are still sluggish for existing units on the market. As the Elora Mill condo complex is finally registered, we will start to see some of those units come to the resale market in 2025.

As these units will be well north of $700k, it is going to be interesting to see what sort of demand there will be in the marketplace and what buyers will be prepared to pay for these condos on the resale market.

My advice for existing listings that have been on the market for a bit. Don’t do a price reduction now. Wait for the new year and put your property on the market as a NEW LISTING at a reduced price then.

If you are thinking of selling in 2025, based on my current read of the market I believe March will be a good target timeframe for many sellers. But I will be monitoring the market very closely in January to see if there is an argument for an earlier list date.

Type of property (i.e. bungalow vs 2 storey, urban vs rural) and even things like the weather will factor into a decision to list earlier – or later. Don’t wait for “all the flowers to bloom” though – as you will probably miss the best time to list.

(There are always exceptions of course – some properties with extensive outdoor landscaping, pools, etc. may want to delay listing somewhat – but don’t wait too long.)

Of course, existing supply and demand is a big part of how well a seller will do in the market – and will be taken into account when determining listing timing. This is where you need an experienced realtor to give you advice in this regard.

Other than interest rates, the housing market will be affected by the overall economy and geopolitical issues, and there remains some uncertainty on this front for 2025. So, while I am much more optimistic on the real estate market for 2025, it’s always the unknown or unexpected that can trip things up.

We will most certainly have a federal election next year – and without getting too political here – it is my opinion this will be a net positive for the real estate market moving forward.

Thinking of selling in 2025? Feel free to reach out anytime at 519-766-3716 or email gmochrie@royallepage.ca for a no obligation discussion on your real estate needs.

At this time, I would like to wish everyone a very Merry Christmas and Happy, Healthy New Year!

Until next month, take care.

George