Canada has now seen ten consecutive quarters of challenging home affordability, and as a real estate agent focused on Ontario’s residential market, I’m often asked what drives these shifts. With mortgage rates unlikely to ease soon, economists are pointing to home prices and income growth as the key factors shaping affordability going forward. Over the next year, steady or slightly higher mortgage rates mean that real progress will depend on whether home prices moderate. Slower population growth could help ease demand and keep prices in check, while a strengthening labour market is expected to support household incomes. Still, economists warn that without a sustained moderation in prices, any affordability improvements may be limited. Every conversation I have with clients reflects how market conditions vary across Canada—Vancouver and Toronto present a different landscape for buyers and sellers compared to Calgary and Edmonton. My approach is always to keep clients informed and confident, whether you’re evaluating your next move or negotiating your home purchase in these evolving conditions.
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