Home sales in Toronto, Vancouver, and Calgary have picked up in recent months as lower interest rates improve affordability. First-time buyers are returning to the market, and mortgage pre-approvals are up 18% year-over-year according to the latest data.

The Return of the First-Time Buyer

After being sidelined by high borrowing costs and strict stress tests, first-time homebuyers are re-entering the market. The combination of slightly lower fixed mortgage rates and stabilizing home prices has created a window of opportunity.

“We are seeing a significant uptick in pre-approval requests from millennials and young families,” notes a leading mortgage broker. “The fear of missing out is returning as inventory begins to tighten in key urban centers.”

Regional Market Highlights

• Toronto: Sales volume is up 12% compared to last spring, with detached homes in the 905 region leading the charge.
• Vancouver: The condo market is particularly active, with multiple offers returning for units priced under $750,000.
• Calgary: Continues to be Canada’s hottest major market, driven by strong inter-provincial migration and relative affordability.

Advice for Buyers in 2025

If you are planning to buy this year, getting pre-approved is crucial. A pre-approval locks in your rate for up to 120 days, protecting you against sudden bond yield spikes while giving you the confidence to make an offer in a competitive market.