Fewer Canadian renters are planning to buy a home within the next 12 months, but recent data from the Bank of Canada (BoC) suggests this trend may open the door for those ready to act.
According to the BoC’s Q1 2025 consumer expectations survey, short-term home-buying intentions have declined. Only 16.1 percent of renters now say they plan to purchase a home within the year. That is a drop of 9.9 points from the previous quarter’s record high, and the lowest level in two years. However, the decrease in demand could reduce competition, creating more favorable conditions for those considering homeownership.
Why the Pullback Might Be a Good Thing
Uncertainty surrounding the upcoming federal election and global trade tensions has led many renters to delay their home buying plans. For buyers with financial stability, this moment could present an advantage. With fewer bidding wars and more motivated sellers, pricing may become more attractive.
Homebuyer Sentiment Can Recover Quickly
Past trends show that homebuying sentiment can recover quickly when market conditions improve. In 2022, interest in buying homes dropped significantly due to high prices and rapidly rising interest rates. Once affordability improved, buyer interest returned just as fast.
The current market shows signs of following a similar pattern. Home prices are beginning to adjust, and many experts anticipate interest rate cuts later in the year. Buyers who are prepared now may be able to act when the environment becomes more favorable.
A Positive Outlook for First-Time Buyers
If you have been holding off on buying your first home, now may be a good time to start preparing. With reduced competition and more listings expected to hit the market soon, conditions may become increasingly buyer-friendly.
Thinking about purchasing a home in 2025? Keep an eye on interest rate trends, housing inventory, and any available government programs. These factors could help you secure a great opportunity in a market that is slowly shifting in the buyer’s favor.
