High Rates, High Hopes: Why 2025 Might Still Be the Best Year to Buy

For many home-buyers, 2025 feels like a confusing time to make a move. Mortgage rates are no longer rock-bottom, the headlines warn about affordability, and many are waiting for that “perfect moment.” Yet if you dig a little deeper, this year may actually be one of the most strategic times to buy — not in spite of higher rates, but because of the current market dynamics.

1. The Cooling Effect: Less Competition, More Choices

Back in 2020-21, mortgage rates were exceptionally low, market activity was hyper-active, and many homes saw multiple offers within days. Today, the pace has slowed. Listings have increased, giving buyers more room to shop, compare features, and negotiate a little more. When demand is less frenzied, opportunities open up for serious buyers.

2. Prices Have Corrected — But Haven’t Crashed

In the Metro Vancouver region, recent data shows the benchmark home price around $1,142,100 in September 2025, which is down about 3.2% year-over-year. 

That means while prices have pulled back somewhat, they are still at elevated levels compared to several years ago. This adjustment phase creates a window where you may avoid the ultra-hot bidding wars, yet still buy before the next upswing.

3. The Math Behind “Buying When Rates Are Higher”

Even if your mortgage rate today is around 4%, what matters more is the cost of waiting. Canadian mortgages generally run fixed for 3-5 years then renew; the rate can be renegotiated thereafter. If you wait for rates to drop, you may be buying at a higher price later. Conversely, if you buy now, you lock in the asset and can refinance later when rates potentially fall. The asset price is the price you’ll most regret if it goes up — the rate you can adjust later.

4. Buyer Incentives & Flexible Structures

Developers and lenders know buyers are cautious. Some new-construction/pre-sale projects are offering more flexible deposit structures (for example 5%-10% upfront with staged payments) or incentives like rebate packages, free upgrades or buydowns of first-year payments. While not universal, these perks give buyers additional leverage in a calmer market.

5. Rental Market Cooling: Ownership Comparisons Shift

One-bedroom rentals in Vancouver have actually fallen about 6% in the last year. 

That means the “renting vs buying” calculus may look different now: if rental rates soften, but ownership builds equity, the long-term case for buying strengthens. It’s not just about current cost, but about what you lock in for the future.

6. Long-Term View: Time in the Market Beats Timing the Market

Trying to time the market perfectly is like trying to predict the next sunny weekend in Vancouver — possible, but rarely successful.

What matters most is time in the market, not timing of the market. If you plan to live in or hold a property for five to ten years, short-term rate fluctuations matter far less than your ability to build equity and security over time.

7. Confidence Returns Before the Crowd

The best opportunities in real estate often appear when confidence is still low.

By the time headlines start saying “the market is recovering,” the deals are already gone. 2025 sits right at that inflection point — where sellers are still realistic, developers are still offering incentives, and rates are starting to edge downward.

Those who wait for perfect conditions might find themselves back in bidding wars by 2026.

Final Thought

High rates may look intimidating, but they’ve cleared the noise and brought balance back to the housing market.

If you have stable income, a solid plan, and a medium- to long-term horizon, 2025 could quietly become one of the best years to buy — before everyone else realizes it.

If you’re exploring homeownership—or know someone who is—let’s connect.

Trust Amanti Marketing Group, backed by 20+ years of experience, to guide you with expertise and care.

Let’s plan your next move together. 🏡✨