Canadian Home Sales Poised for a Strong Finish in 2025
October 20, 2025 | Posted by: Posted by: Dawn Stephanishin & Jenn Wightman - Vernon and Kelowna Mortgage Brokers
The Canadian housing market is showing signs of renewed strength as we approach the end of 2025. According to the latest report from the Canadian Real Estate Association (CREA), home sales across the country are on track for a strong finish to the year, buoyed by lower borrowing costs, improving consumer confidence, and a more balanced market.
A Shift Toward Market Stability
After several years of adjustment, the national housing market appears to be finding its footing again. CREA’s data shows that both home sales and average prices have been steadily improving in most major markets. This rebound comes as many buyers and sellers regain confidence, encouraged by recent interest rate reductions and a more predictable lending environment.
While the pace of growth varies across Canada, British Columbia markets that slowed the most during the high rate period are now seeing a modest recovery. In the Okanagan, both Vernon and Kelowna are showing renewed buyer interest as borrowing costs ease.
Interest Rate Cuts Helping Buyers Re Enter the Market
A key driver behind the recent uptick in activity is the Bank of Canada’s gradual rate reductions in 2025. Lower rates mean lower monthly payments, which can help more households re enter the market and move their plans forward.
If your renewal date is approaching, it is a good time to compare options. Our team can help with mortgage renewals and refinancing strategies so you can secure clear, competitive terms.
National Home Prices Showing Modest Gains
CREA’s latest figures indicate that the national average price has been edging upward in recent months. While prices remain below their 2022 peaks, stabilization is a positive sign for homeowners and the broader economy.
Balanced conditions are giving buyers more time and choice. If a purchase is on your radar, start by reviewing home purchase mortgage options and securing a pre approval so you can shop with confidence.
Supply Levels Still a Key Factor
Canada still faces a structural shortage of housing supply. New listings have improved but many markets remain tight. Population growth and ongoing immigration are adding pressure, which is why sustained construction matters.
If you are planning a renovation or build, explore home equity and renovation financing options to map out a smart plan for funding.
What This Means for Buyers and Homeowners
Lower rates, steady prices, and improving confidence create a helpful window for buyers and renewing homeowners. Whether you are entering the market for the first time, moving up, or restructuring debt, understanding your financing choices is essential.
Work with an experienced local team in Vernon and Kelowna to compare lenders, programs, and timelines. We can assist with pre approvals, rate holds, and renewal or refinance strategies.
Looking Ahead to 2026
As forecasts point to continued stability into early 2026, the market looks more balanced than it has in years. Challenges remain around supply and affordability, yet the outlook is more positive than it was recently.
If you have been waiting for the right moment, review your mortgage options, check your numbers with our affordability calculators, and book a quick call.
BC Mortgage FAQs, Quick Answers to Help You Decide
Are mortgage rates in BC trending lower and how could that affect my approval?
Lower rates improve monthly affordability, but lenders still apply the federal stress test. Start with a pre approval to confirm your range and hold a rate while you shop.
Should I choose a fixed or variable rate right now?
It depends on your comfort with payment changes and your timeline. We will compare fixed and variable scenarios for you. Talk with our local team to align the product to your plan.
How much down payment do I need to buy in BC?
Minimums vary by price band. We will walk you through insured and uninsured options on our home purchase mortgages page.
Can I still buy with 5 percent down in Vernon or Kelowna?
Yes, many buyers do. You will need to qualify under current rules and budget for closing costs. Begin with a same day pre approval.
My mortgage is renewing soon, should I wait or lock in?
If your renewal is within 120 days, compare offers now. We will shop multiple lenders for you. See our mortgage renewals guide.
Is refinancing smart to consolidate debt while rates are lower?
Refinancing can reduce interest costs and simplify payments. We will review penalty math and break even timing. Details here, mortgage refinancing.
How long does a mortgage pre approval last?
Most rate holds last 90 to 120 days. If your search takes longer, we can refresh documents and extend. Start here, mortgage pre approvals.
What closing costs should I expect in BC?
Plan for legal fees, title insurance, appraisal when required, property transfer tax where applicable, and adjustments. We provide a line by line estimate during your mortgage planning call.
Can I finance a new build or major renovation?
Yes, with draw or completion financing depending on your project. Explore options on renovations and home equity.
What documents will I need for approval?
Typically ID, income verification, down payment proof, property details, and a list of debts. We send a simple checklist after your pre approval begins.
Sources
Data and insights referenced are based on the October 2025 housing market update from the Canadian Real Estate Association (CREA).