Local real estate faces supply struggles in 2025

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This article was published 03/02/2025 (217 days ago), so information in it may no longer be current.

Brandon’s real estate market is expected to remain shaped by supply constraints, affordability concerns, and broader economic influences in 2025, according to Brandon Area Realtors executive officer Michael Barrett.

Following a year marked by tight inventory and high prices, he said the market will likely experience a similar landscape in the new year, with potential shifts driven by economic policies and interest rate adjustments.

“Factors like supply and affordability that influenced the market in 2024 will continue to shape the market in 2025,” he told the Sun. “All real estate is local with each local market having its nuances of vulnerabilities and strengths.”

Local economic factors and public policy, he explained, play a role in influencing the market, adding federal and provincial policies all have a trickle-down effect on local markets.

“What happens in the United States may have a profound impact on our domestic policies. Any policies that stimulate the creation of more housing units throughout the housing continuum will be welcome and will have a positive impact on our local real estate market,” he added.

Barrett described the 2024 real estate market as balanced but edging towards a seller’s market. While sales volumes declined to their lowest point in a decade, both median and average sale prices reached their highest levels in the same period.

He explained new listings were also at a decade-low, further tightening supply, adding lower inventory levels contributed to fewer sales but drove prices higher.

Several factors played a significant role in shaping Brandon’s real estate landscape last year.

“Elevated interest rates reduced affordability, causing many potential buyers to delay purchases or reconsider moving to higher-priced properties,” he said. “Certain price points experienced a severe lack of resale housing availability, making it difficult for buyers to find suitable options.”

Rising costs for materials, labour, land, and permitting drove up new home prices, which in turn increased resale housing values. Broader economic conditions, along with municipal, provincial, and federal policies, he added, influenced market dynamics, particularly in housing development.

While buyer preferences varied, affordability remained a dominant factor. First-time buyers prioritized properties that felt well-maintained and updated, while those moving up in the market focused on location, home size, and amenities. Families with school-age children often considered proximity to schools as a deciding factor.

“If interest rates decrease, more buyers may re-enter the market, increasing demand and potentially pushing prices higher,” Barrett said. “Policies that promote new housing development could help alleviate inventory pressures and improve affordability.”

Barrett added that local job growth, wages, and inflation trends will also play a role in determining market activity. “Any measures aimed at increasing housing stock across different affordability levels will be welcomed by industry stakeholders.”

As Brandon enters 2025, he explained, the real estate market is expected to remain competitive, with affordability and supply concerns continuing to shape buyer and seller decisions.

“The market’s trajectory will depend on economic trends, interest rate adjustments, and policy initiatives aimed at bolstering the housing sector,” Barrett concluded.

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