After years of sellers having the advantage, many provinces have returned to a buyer’s market. That means now could be the time to purchase that home you’ve been holding out for. While Canadian home prices are dropping, some might be wondering if it’s the perfect time to own a home — we asked some real estate experts to weigh in.
According to the Canadian Real Estate Association (CREA), there were 206,435 properties listed for sale at the end of June 2025, up 11.4 per cent year-over-year. Meanwhile, a new report from Royal LePage indicates that national home prices remained flat this past spring, and 26 of 64 reported cities experienced a year-over-year decrease in average home prices.
The Royal LePage report suggests that homebuyers were hesitant to buy this past spring because of things like the trade disputes, the federal election and international conflicts. As a result of that slow start, some sellers may be eager to offload their properties now.
So what does this all mean for buyers? Well, having a larger number of homes for sale and to choose from means that buyers are holding the cards. However, there are other reasons why now may be a great time, particularly for first-time homebuyers, to enter the market.
Related: Everything You Need to Know As a First-Time Home Buyer
Improved Affordability
For years, potential buyers have been frustrated by high prices and bidding wars. This year, home prices have stabilized and even decreased in some areas, giving buyers a fair shot at the home of their dreams.
“The last year and a half has definitely seen improved affordability, especially in the most expensive markets in southern Ontario and in Greater Vancouver, in British Columbia,” says Royal LePage’s Director of Research & Communications, Anne-Elise Cugliari Allegritti.
“We’re seeing a lot of inventory come onto the market, so buyers that are active have a lot more choice, a lot more negotiating power, and certainly less competition than what we saw three, four years ago, at the height of the post-pandemic real estate boom.”
Interest Rates Are Reasonable
While it’s impossible to predict the market, especially with today’s headlines and international affairs affecting us here in new ways, there have been several key interest rate cuts by the Bank of Canada over the past year. Last July, the policy rate was 4.5 per cent. This July, that rate is 2.7 per cent.
According to economists, the rate is unlikely to change at the next rate announcement on July 30, and the result could be a more manageable mortgage rate for first-time homebuyers.
“Mortgage rates are significantly lower today than they were a year or two ago,” adds Allegritti. “It’s unlikely they will go up in the near term. So from a borrowing perspective, buyers know what they can afford.”
Related: The Best and Worst Cities for Homebuyers in Canada Revealed
Wages Have Steadily Increased
There are several factors to consider when buying a home, and your income is one of them. In some areas of Canada, wages are growing faster than the cost of living. According to Statistics Canada, hourly wages also rose 3.4 per cent year-over-year in May, meaning that many Canadians are finding themselves in a better financial situation to buy a property right now.
As Canadian renters continue to save, they may also find themselves ready to buy a property. According to the Royal LePage report, 28 per cent of renters considered buying rather than renting before signing their current lease.
Where You Live Matters
While the stars are aligning for most first-time home buyers across Canada, there are some places that are bucking the trend. Quebec is a notable exception, where there is less inventory for buyers to choose from. That means you may have to pay more or have a harder time closing on the home of your dreams there.
Conversely, if you don’t care where you live and are able to secure a job anywhere, the Atlantic provinces continue to host the most affordable big cities to live in.
“The largest influencers of the national trend are really Ontario and BC, where we’re seeing more balanced territory, leaning towards a buyer’s market,” Allegritti explains. “That’s not necessarily because demand is not there. It’s that buyers are really taking their time,” she continues.
“There’s a lot of sidelined demand that is just starting to come back to the market. In the last few weeks of May and in June, we started to see more sales activity, and definitely more buyers looking. That doesn’t necessarily mean they’re transacting immediately on the first property they look at, but they’re starting to come back.”
Related: Am I Ready to Buy A Home? Here’s What Real Estate Agents Say
It’s Still a Personal Choice
While factors like increased inventory, stabilized (or falling) home prices, and lower mortgage rates add up to the perfect storm for first-time home buyers to enter the market, it’s still an extremely personal decision. There’s no overall right time to buy; only the time that’s right for you.
That means securing your down payment, being in a financially stable position, wanting to live in the same place for an extended period, and knowing where you want to live.
“The right time is when you can afford it and you can find a place that fits in your budget and in the neighbourhood that you want to live in,” says Allegritti. “If you find the home of your dreams today and you can afford it, then today is the right time. Because next week, that home might not be available.
