Canadian Housing Market Outlook 2025
Table of contents
National Market Report Summary
- The average selling price of a home in Canada decreased by 3.4% year-over-year to $693,300 in July 2025.
- The average selling price of a single-family home in Canada decreased by 3% year-over-year to $771,900 in July 2025.
- The average selling price of a townhouse/multiplex in Canada decreased by 4.5% year-over-year to $632,700 in July 2025.
- The average selling price of a condo in Canada decreased by 5.4% year-over-year to $490,600 in July 2025.
- The average rent in Canada decreased by 2.2% year-over-year to $2,108 for July 2025.
- August 28, 2025: Today’s lowest mortgage rate in Canada is
for a 5-year fixed.
Composite Home Prices
The average selling price of a home in Canada was $693,300 for the month of July 2025, that’s decreased by 0.7% compared to the previous month. On a year-over-year basis, Canadian home prices have decreased 3.4% over the last 12 months.
Single-family Home Prices
The average selling price of a single-family home in Canada was $771,900 for the month of July 2025, that’s decreased by 0.6% compared to the previous month. On a year-over-year basis, single-family home prices in Canada have decreased by 3% over the last 12 months.
Townhouse and Multiplex Prices
The average selling price of a townhouse in Canada was $632,700 for the month of July 2025, that’s decreased by 0.7% compared to the previous month. On a year-over-year basis, the price of a townhouse in Canada has decreased by 4.5% over the last 12 months.
Condo Prices
The average selling price of a condo in Canada was $490,600 for the month of July 2025, that’s decreased by 0.8% compared to the previous month. On a year-over-year basis, the price of a condo in Canada has decreased 5.4% over the last 12 months.
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Canada Housing Market Summary
Data from the Canadian Real Estate Association (CREA) indicates that the benchmark price of resale residential homes sold across Canada in July 2025 was $693,300, and it decreased by 3.4% compared to a year ago.
CREA also reported a sales-to-new-listings ratio (SNLR) of 52%, indicating a Balanced nationally for July 2025.
Canada Home Sales Up 4% in July as GTA Leads Gains
According to the Canadian Real Estate Association (CREA), national home sales rose 3.8% in July compared to June, marking the fourth consecutive monthly gain and an 11.2% increase since March. The Greater Toronto Area (GTA) led the recovery, with transactions up 35.5% from spring lows, while other urban markets, including Calgary, Edmonton, Regina, and Saskatoon, also posted MoM gains. The Home Price Index (HPI) was unchanged from June, while the national average home price rose 0.6% YoY to $672,784.
- Home sales: 3.8% higher MoM, 6.6% higher YoY
- New listings: Flat MoM (+0.1%)
- Inventory: 202,500 units, up 10.1% YoY
- Home price index (HPI): Unchanged MoM, down 3.4% YoY
- Average sale price: $672,784, up 0.6% YoY
How Canada’s Regions and Major Urban Markets Performed
In Ontario and British Columbia, market conditions remain mixed. The Greater Toronto Area saw a 7.7% month-over-month (MoM) home sales increased in July, yet 76% of homes sold below asking price, with underbidding now common across both condos and single-family homes. Elevated inventory levels and affordability challenges continue to weigh on home price trends. Greater Vancouver (GVA) home sales were down 2% year-over-year (YoY) but showed signs of stabilization, with inventory 40% above the 10-year average, keeping prices in check. Similar patterns are seen in the Fraser Valley and Victoria area, where higher listings are giving buyers more choice and holding values steady.
The Prairie provinces remain more resilient. Calgary’s inventory surged 66% YoY to 6,917 units, pushing months of supply to 3.3 and contributing to price declines, particularly for apartments and row/town homes. Edmonton’s inventory rose 21.8% YoY, with detached prices holding firm while row/town and condo segments softened. Regina and Saskatoon also posted sales gains in July, supported by balanced to tight supply conditions that have kept prices stable.
Homes in Quebec remained firmly in sellers’ territory in July, with prices continuing to climb across all major property types. Montreal saw steady sales growth and only a slight uptick in listings, keeping conditions competitive and overbidding contained. In Quebec City, demand was robust, driving some of the most significant price gains in the province and giving sellers a clear negotiating edge, with a notable share of homes selling above asking. Overall, limited supply and sustained buyer interest kept market conditions tighter than in Ontario and BC.
The housing rebound continues to stabilise the real estate market in Atlantic Canada. Halifax-Dartmouth continues to operate in a seller’s market with low inventory supporting modest price increases, while St. John’s remains steady with consistent demand and stable valuations.
Why the National Market Recovery May Stay Gradual
Lower interest rates since mid-2024 have helped bring buyers back into the market, but recovery speed varies widely by region. Ontario and BC continue to face affordability challenges and high inventory, especially in urban condo markets. Prairie, Quebec, and Atlantic markets benefit from tighter supply, supporting price stability. Federal plans for Build Canada Homes could boost supply over the medium term, but their implementation will determine their impact on prices and affordability.
How July’s Home Sales Affect Buyers, Sellers, and Mortgages Across Canada
For homebuyers, more balanced conditions in many markets have improved negotiating power, particularly in Ontario and BC, while buyers in the Prairies and Atlantic Canada face tighter conditions but enjoy relatively stable prices. Sellers in high-inventory markets may need to price competitively to attract offers, compared to those in balanced or tighter supply regions such as parts of Quebec and Atlantic Canada, where sellers hold more leverage.
Renewers in softer markets can expect stable or slightly lower valuations, while renewers in supply-constrained areas may see stronger appraisals. Canadian homeowners looking to refinance in high-demand regions may benefit from increased home equity, while those in oversupplied condo markets may encounter tighter lending guidelines. For the Bank of Canada, the combination of stable prices and gradually rising home sales suggests monetary policy is cooling demand without causing widespread declines, giving policymakers flexibility in the timing of future interest rate adjustments.
Month-over-Month Expectations for the Canadian Housing Market
Transactions – Number of Sales
The number of sales in Canada was 40,228 during July 2025, that’s increased by 3.8% compared to the previous month. On a year-over-year basis, sales in Canada have increased by 6.4% over the last 12 months.
New Listings
The number of new listings in Canada was 76,769 during July 2025, that’s increased by 0.1% compared to the previous month. On a year-over-year basis, new listings in Canada have increased by 2.9% over the last 12 months.
Real Estate Market
The sales-to-new-listings ratio (SNLR) in Canada was 52% during July 2025, indicating a Balanced. On a monthly basis, that’s increased by 3.7% compared to the previous month. Canada’s yearly sales to new listings ratio has increased by 3.3% over the last 12 months.
The sales-to-new-listings ratio (SNLR) measures the number of home sales compared to new listings. An SNLR under 40% suggests a buyer’s market in which buyers have the upper hand and more negotiating power. An SNLR between 40% and 60% is a balanced market, while an SNLR of over 60% is considered a seller’s market.
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Annual Changes Composite Home Prices by Province
Annual Changes to the National Composite Home Prices
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Canadian Rents Fall for 10th Straight Month, Down 3.6% YoY
Canada’s rental market continued to cool in July, according to recent data from the National Rental Report, with average asking rents slipping 3.6% from last year to $2,121. These lower rents mark the tenth month in a row of declines and a sharper drop than June’s 2.7%. Despite the recent dip, rents remain 2% higher than in 2023 and 11% above 2022 levels.
Purpose-Built Units Hold Value Better
Purpose-built apartments averaged $2,095, down 1.7% over the past year but up 23% in three years. They remain cheaper than condos and single-family rentals, while also benefiting from more incentives.
Biggest Winners and Losers by Unit Type
One-bedroom units saw the steepest annual drop at 4.6%, while studios held steady with a minimal 0.6% decline and the strongest 3-year growth at nearly 20%. Three-bedroom purpose-built units rose 3.3% to $2,743, staying almost $200 below condo counterparts.
Regional Leaders and Laggards
Saskatchewan led the country with 4% annual rent growth and remains the most affordable province at $1,384. British Columbia and Nova Scotia posted the most significant annual declines, while Quebec saw a modest 3.4% rise in 3-bedroom rents.
Major City Highlights
Vancouver and Calgary recorded the sharpest drops among the larger urban markets, each falling more than 9%. Montreal fared better, down just 1.6% to $1,971, with 3-bedroom units climbing 2.8%.
Cooling Trend Spreads Across Canadian Rental Markets
According to RBC, rents are falling in more than half of Canada’s 40 largest cities, with the steepest annual drops for 2-bedroom units in Vancouver, Kelowna, Calgary, Toronto, and Halifax. This is a sharp contrast to the post-pandemic rebound when wage growth and immigration fuelled double-digit rent gains in many markets. Softer conditions now reflect a mix of slower population growth, particularly in Ontario and BC following immigration cuts, weakness in trade-exposed job sectors, and an increase in rental supply. Smaller student-focused markets like Kitchener-Waterloo, Guelph, and London are also seeing declines, while manufacturing hubs such as Hamilton, Peterborough, and Oshawa have recorded flat or falling rents. Ottawa stands out with a $200 increase, supported by the stability of its public service workforce.
More Supply and Slower Demand Set the Stage
Looking ahead, persistent labour market softness, lower immigration, and expanding rental supply point to further moderation in rents. Improving ownership affordability and lower interest rates could also ease pressure on the rental market, while government efforts to boost housing construction should help maintain balance. Despite these trends, rents remain well above pre-pandemic levels in most major centres, keeping affordability a challenge for many households.
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Canada Market Rents Summary
The average rent in Canada was $2,108 for the month of July 2025, which decreased by 2.2% on a year-over-year basis.
The average rent for a bachelor apartment in Canada was $1,618 for the month of July 2025, which decreased by 0.4% on a year-over-year basis.
The average rent for a 1-bedroom apartment in Canada was $1,884 for the month of July 2025, which decreased by 4.1% on a year-over-year basis.
The average rent for a 2-bedroom apartment in Canada was $2,291 for the month of July 2025, which decreased by 2.7% on a year-over-year basis.
The average rent for a 3-bedroom apartment in Canada was $1,884 for the month of July 2025, which decreased by 2.7% on a year-over-year basis.
How Does Renting Compare with Homeownership in Today’s Housing Market?
Each $100,000 in mortgage balance costs an average of $528.19 per month on nesto’s lowest fixed 5-year rate at
Rental Price Changes by City
Rental Price Changes by Province
Rental Price Growth by Housing Type
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Frequently Asked Questions on Canadian Housing Market Outlook for 2025
Will 2025 be a good year to buy a house in Canada?
2025 could be an ideal year for homebuyers as housing prices in Canada are expected to stabilize, offering a window of opportunity for those looking to enter the market. With demand expected to remain strong in big cities like Toronto, Vancouver, and Montreal, buyers should act quickly in regions where prices are more affordable. The potential for increased housing inventory and fewer price surges will make homeownership more attainable for financially prepared buyers.
Are Canadian home prices expected to drop in 2025?
Home prices in Canada are expected to stabilize rather than decline sharply in 2025. While some regions may experience slight price corrections, factors like low housing supply, population growth, and continued demand will keep prices relatively steady. Major urban centres may see modest increases, while smaller markets could experience greater affordability. Monitoring housing trends will help buyers identify areas with more favourable pricing.
Will Canada’s housing market still be in a bubble in 2025?
Speculation about a housing bubble remains, but experts predict Canada’s real estate market is entering a period of stabilization rather than collapse. Housing shortages, particularly in high-demand regions like Toronto and Vancouver, continue to prevent significant price drops. While affordability challenges persist, Canada’s market is more likely to experience a soft landing, with home prices balancing as supply improves.
What are the predictions for Canada’s housing prices in 2025?
Home prices in Canada are predicted to remain stable, with slight increases in major markets. Supply-demand imbalances will likely drive growth, particularly in regions with limited housing inventory. Cities like Vancouver, Montreal, and Toronto will remain competitive due to ongoing demand, while smaller markets may offer better affordability for buyers. Monitoring regional price forecasts will help identify areas with stable or lower home prices.
How will population growth impact Canada’s housing prices in 2025?
Canada’s strong population growth will continue to put upward pressure on home prices in 2025. Increased demand for homes, particularly in urban centres, will outpace the growth in housing supply, maintaining competitive prices. Efforts to improve construction and address supply shortages may help balance the market over time, but high-demand areas are expected to see continued price resilience.
Will housing affordability improve in 2025?
Housing affordability in Canada will remain a key challenge in 2025, especially in cities like Toronto and Vancouver, where demand far exceeds supply. While home prices are stabilizing, affordability improvements will depend on increased housing inventory and more balanced market conditions. Buyers looking for affordable options should explore smaller markets or up-and-coming regions where prices remain more accessible.
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