Despite the ongoing global uncertainties, real estate activity continues in Burlington, though at a slower pace. According to Clinton Howell, a local broker, the market is experiencing lower-than-usual transaction volumes, reflecting the anxiety and uncertainty people are feeling about the economy.
“People are definitely factoring in the current economic climate and the geopolitical situation. Governments are making decisions based on their interests, but the constant shifts and changing policies are creating a lot of uncertainty,” Howell shared. He also noted the global trade tensions and the Bank of Canada’s recent rate cuts, which are more about protecting the economy than specific policy goals. This uncertainty has led to more caution among buyers and sellers.
Howell points out that many buyers are now moving due to necessity rather than just upgrading for personal desires. “People are making moves out of necessity, like young couples needing more space for a growing family, or seniors who need to downsize due to mobility issues,” he said. “The motivations are more lifestyle-based than speculative.”
Despite the challenging conditions, Howell notes that buyer activity remains strong due to pent-up demand and a housing shortage. “There are many interested buyers getting pre-approved for mortgages and gearing up for when the market stabilizes,” he explained. As inventory increases and more supply enters the market, Howell expects more buyers to jump in, making this a strong buyer’s market.
Understanding the Buyer’s Market
Since June 2024, the market has mostly favored buyers, with a brief period in the fall where sellers had the advantage. However, for Q1 of 2025, it remains a strong buyer’s market with low sales volumes attributed to economic uncertainty.
A buyer’s market occurs when inventory rises and the percentage of sales relative to new listings falls below 50%. This is typically driven by factors like economic downturns, high-interest rates, and market instability.
What Buyers Should Know:
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Great Deals Available: There are good deals to be found right now, particularly for buyers ready to move.
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Offer Conditions Are Common: Buyers should expect to include conditions in their offers, which is normal in this market.
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Upgrading Is Ideal: For buyers looking to upgrade, the relative cost difference between selling a lower-priced property and purchasing a higher-priced one is minimized.
What Sellers Should Know:
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Upgrading Sellers: Sellers looking to upgrade their homes can still benefit from favorable conditions in the buyer’s market.
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Downsizing or Retiring: For those selling to downsize or retire, it may not be the best time to maximize their sale price. However, life changes sometimes leave little choice, Howell notes.
Howell recommends staying informed with his weekly market updates, available on his social media channels (@clintonhowell.ca).
March 2025 Market Update: Burlington
In Burlington, the slowdown in home sales continues, with Q1 sales down by 36% compared to the same period last year, marking the slowest start to the year on record. While new listings are rising, they aren’t growing as quickly as in surrounding areas. Last month, there were 155 sales, with the sales-to-new listings ratio improving to 43%, which has helped prevent a major spike in inventory growth.
The months of supply is holding just above 3 months, but the overall inventory remains higher than usual for Burlington, which has put some downward pressure on home prices.
In this shifting market, both buyers and sellers must adapt and consider timing carefully as they make their next moves.
