Real Estate Market Update: What Investors Need to Know

Hey there! If you’re sitting on the sidelines wondering when to jump back into real estate investing, this one’s for you.

I’ve been talking to hundreds of investors lately, and everyone’s asking the same thing: “What’s going on with the market? Should I buy now or wait?”

Here’s the deal. I don’t have a crystal ball, but I’ve got years of experience and I’m seeing some clear trends that every investor needs to know about.

Let me break down exactly where we stand and what it means for your next investment.

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Interest Rates Have Hit (Almost) Rock Bottom

First, let’s talk about what everyone’s obsessing over - interest rates in Canada.

We’ve been through an absolute rollercoaster. COVID shot real estate prices through the roof. Then the Bank of Canada went crazy with rate hikes - I’m talking rates that went up 3x what they were before. That’s massive.

But here’s what I’m seeing now: rates have dropped almost as low as they’re going to go.

Maybe we’ll see one more cut this year. Maybe not. Most banks think rates will stay flat. Some think they’ll drop a tiny bit. Others think they’ll rise slightly.

My take? We’re at the bottom.

And here’s why that matters for you…

Why You Should Stop Waiting and Start Buying

Remember that old saying about planting trees? The best time was 20 years ago. The second best time is today.

Same thing applies here.

I’ve got hundreds of investors who’ve been waiting on the sidelines. They’re all saying the same thing: “We’ll buy when rates come down.”

Well, guess what? Rates ARE down. And when all these investors realize this is as low as it gets, they’re all going to jump into the market at once.

You know what happens when more buyers compete? Prices go up.

Right now, it’s a buyer’s market. You’re getting discounts. You have negotiating power.

But that won’t last when everyone else figures out what you now know.

US Market Opportunities Are Getting Even Better

Donald Trump just announced $200 billion in bonds that Fannie and Freddie can purchase. Translation: US interest rates are dropping for homeowners.

This creates more competition from regular homebuyers, which means higher prices over time. But it also means more liquidity and opportunities.

I tell my investors to erase the border. Look at a property in Toronto versus one in Detroit. Which gives you better returns? That’s your answer.

Some people love Trump, some hate him. I don’t care. I care about your bank account and your returns. Politics don’t pay your mortgage - cash flow does.

Smart Strategies That Are Working Right Now

The Missing Middle: ADUs and EDUs

This is huge. I’m seeing tons of investors add additional dwelling units to existing properties.

One client just got financing to add a unit in his basement AND his backyard. We gave him a construction loan, and we’ll refinance with a permanent lender when it’s done.

The rules have gotten way more relaxed. Cities are giving variances they never used to approve. If you had a single-story house, your ADU used to have to be single-story too. Now? They’re letting people add second levels even if the main house is one story.

This could turn a break-even property into a cash cow.

CMHC Multifamily Programs

If you’ve got serious capital, pay attention to this.

We’re building projects from 8 units up to 94 units using CMHC financing - up to 95% of project value with 50-year amortizations.

You need 5+ units to qualify. And here’s the kicker - you get better rates than single-family properties. I’m seeing low threes instead of low fours.

Alberta is the sweet spot right now. You don’t have to take rent reductions like you do in Ontario. Edmonton wants to double their population in 10 years, so there’s massive growth coming.

Alternative Asset Classes in the US

Investors are getting creative. I’m seeing way more:

RV and trailer park purchases
Storage facility investments
Fix and flip operations

A year ago, nobody was looking at this stuff. Now it’s hot.

The Bottom Line: Time to Act

Look, I get it. Uncertainty makes people nervous. But here’s what I know:

Rates are at or near the bottom
Inventory is still good for buyers
Competition is low (for now)
Programs and financing are available

When all those sidelined investors realize what you now know, your window closes.

Don’t be the investor who waits for the “perfect” time. There’s no perfect time. There’s only right now and the opportunities in front of you.

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Frequently Asked Questions

Should I buy now or wait for rates to drop more?

Rates are likely at or very close to the bottom. Most banks predict flat rates this year, with maybe one small cut. Waiting means competing with hundreds of other investors who are also waiting for rates to "hit bottom."

Is investing in US real estate worth it for Canadians?

Absolutely. Ignore the border and focus on returns. Many US markets offer better cash flow and landlord-friendly laws. With new Fannie/Freddie programs, there's even more liquidity coming to US markets.

What are ADUs and EDUs, and should I consider them?

Additional Dwelling Units (ADUs) and Extra Dwelling Units (EDUs) are secondary units you can add to existing properties. Rules have relaxed significantly, and cities are approving more variances. This can turn break-even properties into profitable ones.

How much do I need to invest in CMHC multifamily projects?

It varies by project and your role. You might contribute capital, experience, or both. These projects offer 95% financing with 50-year amortizations and better rates than single-family properties. You need 5+ units minimum.

Why is Alberta better than Ontario for multifamily investing?

Alberta doesn't require rent reductions for CMHC affordable housing programs because average incomes are higher. Ontario markets often require significant rent discounts ($800 vs $1500 for comparable units), plus additional affordability requirements from cities.

What alternative asset classes should I consider?

Investors are having success with RV parks, trailer parks, storage facilities, and fix-and-flip projects, especially in the US. These weren't popular a year ago but are gaining traction due to different financing rules and return profiles.

How do I know if it's a buyer's market right now?

You're getting discounts, have negotiating power, and there's good inventory available. This won't last when sidelined investors realize rates have bottomed out and jump back into the market simultaneously.

Should politics affect my real estate investment decisions?

No. Focus on the numbers - purchase price, income potential, and cash flow. Politics don't pay your mortgage. Whether you love or hate any politician, base decisions on returns and fundamentals, not political preferences.

Disclaimer: LendCity Mortgages is a licensed mortgage brokerage, and our team includes experienced real estate investors. While we are qualified to provide mortgage-related guidance, the broader financial, tax, and legal information in this article is provided for educational purposes only and does not constitute financial planning, tax, or legal advice. For matters outside mortgage financing, we recommend consulting a Chartered Professional Accountant (CPA), licensed financial planner, or qualified legal advisor.

Written by

LendCity

Published

January 26, 2026