As the year draws to a close, it’s the perfect time to reflect on the dynamic shifts we’ve witnessed in the real estate market. There are countless factors that contribute to a market’s performance, and even terms like “success” and “failure” can mean different things to different people. Coming out of the COVID-19 pandemic, which ushered in historically low interest rates, we experienced one of the strongest bull markets in history. This was followed, not by a mere downturn, but what could be described as a near-standstill.

The Bank of Canada’s aggressive interest rate hikes to combat inflation predictably slowed the market to a crawl. Buyers and sellers alike decided to wait it out, leading to minimal activity and relatively stable prices.

In my view, the Canadian real estate market demonstrated remarkable resilience during this time. Many experts predicted significant price drops accompanied by a rapid increase in supply. While supply did rise, it did so gradually, and prices in our markets dipped but avoided dramatic declines. Although spring 2024 brought a brief wave of momentum, it quickly fizzled out, leaving the market largely stagnant through the summer and into late fall.

Now, as we approach the end of the year, we’re starting to see the winds of activity pick up. Whether this is due to the Bank of Canada’s recent interest rate cuts, political events like the upcoming U.S. election, or anticipation of Canada’s federal election, buyer interest has begun to return—albeit cautiously. With another likely rate cut in January and a probable Canadian election in the spring, we may be on the cusp of an active spring market. Historically, activity in our region begins to ramp up around Family Day weekend, and early signs suggest 2025 could bring a renewed sense of opportunity.

How strong the market will be or how long this renewed activity will last remains uncertain. However, from conversations with my buyers and others in the industry, there’s no doubt that interest levels are increasing. With buyers returning, we can expect market activity to follow.

Here’s to a dynamic and promising 2025!