Is Now the Best Time in 3 Years to Buy a Home in Canada?

After years of skyrocketing home prices, intense bidding wars, and tough competition, Canada's housing market is finally seeing a shift — and it’s giving buyers a bit of breathing room.

A recent RBC report suggests that affordability is improving, making it the most buyer-friendly market we’ve seen in three years. But while conditions have eased, owning a home still isn’t within reach for everyone. 

Why It's Easier to Buy Right Now

There are two major reasons behind the improvement:

1. Falling Mortgage Rates – Over the past few years, interest rates have gradually declined, making it cheaper to borrow money.

2. Softer Home Prices – National average home prices have dipped slightly, and with fewer bidding wars, buyers aren’t being pushed to go over asking like they were during the pandemic peak.

   
   

This combination also impacts the mortgage stress test, making it easier for borrowers to qualify for a loan. Lower interest means lower qualifying rates, which increases how much buyers can borrow.

Prices Are Better - But Still High

Even with prices dropping about 3.5% year-over-year, many homes are still well above pre-pandemic levels. Think of it like this: just because it’s no longer scorching hot doesn’t mean the market is “cool.” Affordability has improved technically, but many first-time buyers still find themselves priced out.

The gap between what buyers are willing to pay and what sellers want is also slowing things down. Listings are up, but many homes are sitting unsold because price expectations don’t match.

Market Outlook: What's Next?

RBC expects prices to remain relatively stable over the next two years, with some local exceptions. That’s good news for buyers hoping to plan ahead — and even better news for those considering condos.

In several cities like Toronto, Edmonton, Saskatoon, and Winnipeg, condo affordability has rebounded to pre-pandemic levels. Inventory is rising, giving buyers more options and less pressure to rush.

That said, certain property types like semi-detached homes in hot neighbourhoods are still seeing strong demand and even bidding wars due to low supply.

Don't Forget the Hidden Costs

If you’re house hunting, remember: it’s not just about the mortgage. Ongoing costs like property taxes, home insurance, and utility bills are expected to keep rising, so make sure you factor those into your budget. 

A Competitive Lending Market 

Lenders aren’t just offering better rates — they’re also competing harder to win over (or keep) clients. Some are even offering cash-back incentives on new mortgages or renewals. 

Bottom Line:

Affordability is definitely improving, especially compared to the last few years. But we’re not in a buyer’s paradise just yet — more like a cooling market with pockets of opportunity.

If you're thinking about buying, renewing, or just exploring your options, now might be the time to make your move. Need help figuring out what’s possible in this market? Reach out to us at Admore — we’re here to help you run the numbers and make it happen.

Source: Global News