The housing market became more affordable in 2025 as selling prices and mortgage
rates trended lower. Improved affordability has set the market up for recovery. Once
households are convinced that the economy and labour market are on a solid footing,
sales will increase as pent-up demand is satisfied.
The average selling price in December was 1.006 million - down by 5.1 per cent compared
to December 2024.
Households must be confident in their employment situation before committing to long-
term monthly mortgage payments, even in this more affordable market.
Consumers need to feel they can weather the storm and be able to afford the monthly
mortgage payments if they decide to move.
Once we see certainty around trade, many households will move off the sidelines, and
that can happen quite quickly.
