Downsizing is Driving the Spring Market

The Market Is Moving for Different Reasons This Spring

The housing market across Durham is being shaped less by a single factor like rates and more by a combination of longer-term forces that are changing who is moving, what they are buying, and how they are financing it.

One of the biggest underlying drivers is demographics. As of July 1, 2025, almost one in five Canadians, or 19.5%, were 65 or older. As that share grows, housing needs shift toward simpler living: fewer stairs, lower maintenance, better layouts, and predictable monthly costs. That has real impact on demand patterns, particularly for homes that feel turnkey and easy to transition into.

Financing rules are also widening the range of buyers who can participate. The insured mortgage cap increased to $1.5 million effective December 15, 2024, which can allow some buyers to purchase with less than 20% down below that threshold, depending on lender and insurer approval. Minimum down payment rules generally remain 5% on the first $500,000 and 10% on the portion above that up to $1.5 million, with 20% required at $1.5 million and above. In practical terms, that flexibility can keep more buyers active, even when affordability is tight.

A third major piece is the wealth shift created by long-term homeownership. Owners who have been in a home for 7+ years often carry meaningful equity, and we are seeing that equity used in a few common ways: right sizing into a home that better fits the next stage of life, reducing monthly carrying costs, and supporting family members with gifts or down payments. That equity-driven movement creates a chain reaction through the market, influencing both supply and demand.

Where this lands today, as we move through the start of the spring market, is that buyers are active, but also more selective. Homes that remove friction are the ones that tend to perform best. That usually means strong presentation, clarity in pricing, and a home that feels well cared for. Meanwhile, listings that feel uncertain, dated, or hard to interpret can struggle, even when activity is up.

The key takeaway is that the current market is not being driven by a single headline. It is being driven by lifestyle decisions, financing flexibility, and equity choices. For homeowners considering a move this year, this is exactly why getting organized early matters, not for timing theory, but because the market is already in motion and buyers are paying close attention to what comes available.

Brandon Hebert
The Hebert Group
416.949.7529