CMHC predicts home sales, prices to rebound in 2025, but U.S. tariff threat clouds outlook

Canada Mortgage and Housing Corp. is forecasting a rebound in home sales and prices this year as homebuyers take advantage of improved borrowing conditions, but says its outlook is clouded by the threat of widespread tariffs from the U.S.

The national housing agency says a trade war between Canada and U.S., along with factors such as reduced immigration targets, would likely slow the economy and limit housing activity, even as some households see improved buying power in the short-term.

Despite those challenges, the agency’s 2025 market outlook report predicts the combination of lower borrowing costs and Ottawa’s changes to mortgage rules will help unleash pent-up demand from those who have felt priced out of the market.