If you're looking to buy or sell in 2025, here's what you need to know

As real estate agents and mortgage brokers look ahead to 2025 — they expect to see a more "robust" real estate market coming over the next 12 months.

"I'm predicting that it is going to become a sellers' market again," said Windsor real estate broker Danial Malik.

"Interest rates are coming down in the next several months and that raises the prices all across the board on average."

In November, the average sale price of a home in Windsor-Essex, according to the local association of Realtors, was $584,452.

Malik predicts that number will go up to $650,000 to $670,000 in 2025. He does not believe it will crack the $700,000 mark the way it did in 2022, getting up to $723,739 in March of that year.

Mortgage reforms

Mortgage agent Rasha Ingratta said that there is a "lull" in the market as of December, but anticipates a "really good start" to the new year, especially in the spring.

Beyond the drop in interest rates, which should help invigorate the market, she points to a number of recent mortgage reforms from the federal government that will further stimulate activity.

For example, as of Dec. 15, 2024, if your down payment is less than 20 per cent of your home's price, you can get a 30-year mortgage if you're a first-time home buyer or are purchasing a new build. That gives people five more years to pay off an insured mortgage. The cap is 25 years in all other cases.

Furthermore, as of Dec. 15, 2024, the government also brought up the price cap for insured mortgages from $1 million to $1.5 million, which means that buyers with a down payment below the 20 per cent mark could access homes at higher price points.

"That's going to create and boost consumer confidence," Ingratta said.

That said, there is some economic uncertainty for the months ahead — with a second Donald Trump presidency in the United States and his 25 per cent tariff threat on all Canadian goods. 

"It is going to affect the housing market to some degree," said Malik. "But, we're not sure as to how much it is going to have an impact going forward."

Tips for 2025

Malik's advice to sellers moving forward is to "be patient."

"The longer you wait, the more competition there will be for your property," he said.

His advice to buyers is to get into the market sooner rather than later.

"Competition is going to go up accordingly as interest rates come down. So that's going to put upward pressure on prices and again, you're going to end up paying more for the house you want," he said.

As for how to manage your purchase, Ingratta suggests buyers select a variable or short-term mortgage, because she believes interest rates will continue going down in the coming months.