Plenty of buyers are still seeing affordability challenges – but others who were previously just on the margins could find their chance now
Home sales across Canada may have inched higher for five months in a row before falling in September, but few housing market watchers are expecting activity to surge anytime soon.
Plenty of buyers are still waiting it out in the expectation that home prices – which have been slipping in many markets over the past several months – will dip further, while caution about the economic outlook is keeping other prospective buyers on the sidelines.
That sense of limbo may be dampening growth prospects for Canada’s real estate and mortgage industries, but one buyer cohort could be onto a golden opportunity right now: Canadians hoping to purchase for the first time.
The current market, with slightly lower property values and interest rates and less competition, is tailor-made for buyers who previously found themselves priced out of purchasing a home, according to RE/MAX Canada area vice president Kingsley Ma (pictured top).
He told Canadian Mortgage Professional those Canadians are seeing “tremendous” opportunities in the current environment and warned that trying to time the market when they’re already in a position to purchase might not be the best option.
“For those that are waiting for a freefall, I don’t believe that will happen,” he said. “It might get a little bit softer, a couple of percent in terms of overall prices – especially smaller units. But I don’t believe there’s going to be a freefall in terms of prices.
“However, if you look at the market now, it’s probably one of the best times in the last handful of years for a younger buyer to get in because now interest rates are coming down a little bit in the next couple of months, hopefully.”
Why now might make sense for some Canadians to buy
The Bank of Canada isn’t expected to slash its benchmark rate dramatically, but most economists believe the central bank is on course to bring rates at least gradually lower in the months ahead.
Meanwhile, in sharp contrast to the COVID-19 housing market boom, inventory has flooded plenty of major markets, not least Toronto and Vancouver where a glut of supply is now available.
Plenty of that inventory is problematic “dog-crate” condo supply predominantly designed for investor buyers to use for rental units.
But in other property types, milder competition and more reasonable prices are also boosting the outlook for first-time buyers, according to Ma.
“You can actually negotiate for better prices now,” he said. “Despite the fact that the average sale price is already much lower, there are still opportunities for you to negotiate.
Canadian home sales slipped 1.7% in September compared to August, halting a five-month run of gains that began in April, according to the latest data from the Canadian Real Estate Association (CREA).https://t.co/oBPKfkTGHC
— Canadian Mortgage Professional Magazine (@CMPmagazine) October 16, 2025
“And in hot markets, people don’t really get to choose what they want when everybody’s bidding. But now you get to take your time, analyze where you want to live and what you want to live in.”
Many young Canadians still priced out of a home
Of course, the price declines seen over the past 18 months still haven’t moved the needle substantially for many buyers, especially younger ones, in major markets where affordability remains well out of reach.
The average national home price may have tumbled since the height of the market in late 2021 and early 2022, but it remains well above pre-pandemic or even mid-2021 levels.
Still, Ma said buyers previously just on the margins who can now qualify for a home aren’t just able to purchase – they can also set their sights on a better property than before.
“The last good part is that if you’re a younger buyer and you start a family, you might have originally had a two- or three-bedroom condo in mind,” he said. “Maybe now you can move up to a townhome or move to get a detached home now.
“So you already have that opportunity, potentially, to upsize immediately over what your original plan was.”
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