Canadian Housing Market Outlook 2025
Table of contents
National Market Report Summary
- The average selling price of a home in Canada decreased by 2.1% year-over-year to $712,200 in February 2025.
- The average selling price of a single-family home in Canada decreased by 1.8% year-over-year to $787,600 in February 2025.
- The average selling price of a townhouse/multiplex in Canada decreased by 2.6% year-over-year to $653,200 in February 2025.
- The average selling price of a condo in Canada decreased by 3.4% year-over-year to $512,300 in February 2025.
- The average rent in Canada decreased by 1.9% year-over-year to $2,101 for February 2025.
- April 17, 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 $712,200 for the month of February 2025, that’s unchanged by 0.0% compared to the previous month. On a year-over-year basis, Canadian home prices have decreased 2.1% over the last 12 months.
Single-family Home Prices
The average selling price of a single-family home in Canada was $787,600 for the month of February 2025, that’s decreased by 0.2% compared to the previous month. On a year-over-year basis, single-family home prices in Canada have decreased by 1.8% over the last 12 months.
Townhouse and Multiplex Prices
The average selling price of a townhouse in Canada was $653,200 for the month of February 2025, that’s increased by 0.2% compared to the previous month. On a year-over-year basis, the price of a townhouse in Canada has decreased by 2.6% over the last 12 months.
Condo Prices
The average selling price of a condo in Canada was $512,300 for the month of February 2025, that’s increased by 0.3% compared to the previous month. On a year-over-year basis, the price of a condo in Canada has decreased 3.4% 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 February 2025 was $712,200, and it decreased by 2.1% compared to a year ago.
CREA also reported a sales-to-new-listings ratio (SNLR) of 45.9%, indicating a balanced market nationally for February 2025.
CREA Reports Cooling Confidence and Market Pullback in February
According to the Canadian Real Estate Association (CREA), for February 2025, national home sales fell to their lowest level since November 2023, with buyers retreating in the face of rising uncertainty from the US-Canada trade conflict. The escalating tariff tensions caused a nearly 10% decline in home resales from January, with market confidence eroding across the country, particularly in Ontario and British Columbia.
- Home sales plunged 9.8% month-over-month and were down 10.4% year-over-year.
- New listings fell 12.7%, reversing January’s surprise uptick.
- The MLS Home Price Index declined 0.8% from January and 1% year-over-year.
- The average sale price dropped 3.3% year-over-year to $668,097.
- Active listings increased 13.1% year-over-year to 146,250, still below the long-term average of 174,000.
The latest data reflects a significant drop in confidence as the US imposed tariffs in January, fuelling concern about the Canadian economy’s resilience. The Greater Toronto Area (GTA) saw the steepest monthly decline in sales volume at -29%, with similar trends noted in Hamilton (-20%), Niagara (-17%), and Kitchener-Waterloo (-15%). On the West Coast, markets in the Fraser Valley (-14%), Greater Vancouver (-13%), and Victoria (-5.7%) also saw a third consecutive month of declining activity.
Home Price Trend Softening in Major Markets
The MLS Home Price Index slipped across most major markets, with price drops most notable in Ontario and BC.
- Ontario’s index fell 1.3% from January, with Toronto down 1.5%, marking the steepest drop in 15 months.
- BC’s index dipped 0.5%, with Vancouver sliding 0.6%.
- Nationally, the average seasonally adjusted home price fell 4.6% from January.
Despite these declines, buying opportunities have emerged in some regions, particularly with the Bank of Canada’s recent rate cut, which may ease monthly mortgage payments for new buyers and those looking to renew.
Market Demand Shifts Toward Buyers
With more inventory and rising interest rate sensitivity, buyers have increased negotiating power. The sales-to-new listings ratio (SLNR) increased to 49.9% (from 48.3% in January), indicating a balanced market, though still below the long-term average of 55%.
- Inventory rose to 4.7 months from 4.1 in January, just shy of the 5-month long-term average.
- Markets in Saskatchewan and Alberta remain more resilient, with Edmonton and Calgary showing sustained activity and rising prices in Edmonton.
- Out east, Quebec City, Sherbrooke, and St. John’s maintained solid momentum, while Montreal slipped 9% month-over-month.
Uncertainty Weighs on a Typically Active Homebuying Season
February’s market performance signals a broader trend of hesitancy among buyers and sellers, a sentiment driven by the ongoing US trade war and shaky economic confidence. Despite lower interest rates and more affordable pricing, many Canadians take a “wait-and-see” approach. The usual spring market boost may be subdued unless trade tensions ease or consumer confidence rebounds.
Those considering a home purchase, mortgage renewal, or refinance may benefit from current buyer-friendly conditions, especially as more listings and softer prices open the door for negotiation opportunities. Contact nesto mortgage experts for your personalized mortgage strategy tailored to your financial goals. Let’s make your homeownership journey more affordable.
Transactions – Number of Sales
The number of sales in Canada was 35,517 during February 2025, that’s decreased by 4.8% compared to the previous month. On a year-over-year basis, sales in Canada have decreased by 12.2% over the last 12 months.
New Listings
The number of new listings in Canada was 77,379 during February 2025, that’s increased by 3.1% compared to the previous month. On a year-over-year basis, new listings in Canada have increased by 10.5% over the last 12 months.
Real Estate Market
The sales to new listings ratio (SNLR) in Canada was 45.9% during February 2025, indicating a balanced market. On a monthly basis, that’s decreased by 7.6% compared to the previous month. Canada’s yearly sales to new listings ratio has decreased by 20.6% 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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Asking Rents Reach Lowest Level in Almost Two Years
According to the National Rental Report for February 2025, average asking rents in Canada dropped for the fifth consecutive month, decreasing by 4.8% year-over-year to $2,088—the lowest level seen since July 2023. This notable decline marks the steepest annual drop since the pandemic’s peak in April 2021.
- The most significant decline was in average rents for condo apartments, which fell 7.6% to $2,192, marking a 26-month low.
- Studio condos experienced the most significant decrease (-10 %) to $1,772, followed by one-bedroom units, down 8.8% to $1,973.
- Purpose-built apartments witnessed a smaller annual decline of 1.9% to an average of $2,070.
- Studio and three-bedroom units saw increased rents, indicating affordability and family-oriented housing demand.
Provincial rental market dynamics seeing varied trends:
- Ontario and British Columbia experienced notable declines in apartment rents (-4.2% and -1.0%, respectively), whereas Saskatchewan (+5.2%) and Manitoba (+3.4%) saw the most substantial growth, reflecting robust demand in more affordable regions.
Cities like Toronto, Vancouver, and Calgary reported significant annual rent declines:
- Toronto’s rents dropped 6.7% year-over-year, averaging $2,615—the 13th consecutive monthly decline.
- Vancouver saw a 4.8% annual decrease to $2,870, hitting a nearly three-year low.
- Calgary faced the most significant decline among major markets, with rents falling 7% to an average of $1,916.
However, several markets defied the trend:
- Quebec City emerged as the fastest-rising market, with a remarkable 12.3% annual rent growth.
- Oakville and Saskatoon also recorded substantial gains, rising 12.1% and 10.3%, respectively.
Looking Ahead: Market Stability & Opportunity
While the overall downward trend in rents highlights improved tenant affordability, some localized markets and property types indicate growing demand and potential supply shortages. The ongoing volatility underscores the importance of homeowners and investors closely monitoring trends.
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Canada Market Rents Summary
The average rent in Canada was $2,101 for the month of February 2025, which decreased by 1.9% on a year-over-year basis.
The average rent for a bachelor apartment in Canada was $1,602 for the month of February 2025, which increased by 1.3% on a year-over-year basis.
The average rent for a 1-bedroom apartment in Canada was $1,899 for the month of February 2025, which decreased by 2.6% on a year-over-year basis.
The average rent for a 2-bedroom apartment in Canada was $2,292 for the month of February 2025, which decreased by 2.6% on a year-over-year basis.
The average rent for a 3-bedroom apartment in Canada was $1,899 for the month of February 2025, which decreased by 2.6% on a year-over-year basis.
How Does Renting Compare with Homeownership in Today’s Housing Market?
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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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EXPLANATIONS
Interest Rates
Property Values
Home Price Index
Property Types
Property Ownership Classes
Strata Insurance
Rental Values
Qualifying Criteria
Professional Titles
Mortgage Experts
Interest Rates
Qualified using nesto’s fixed 5-year insured and uninsured rates as advertised on our website. For today, Thursday, April 17, 2025, our example calculations are qualified on our lowest rates, which may or may not apply to your unique financing situation or long-term goals. Insured fixed-rate mortgages will be qualified at
We appreciate your patience and understanding and encourage you to email us at website@nesto.ca with information that needs correction alongside your sources.
Property Values
Home values collected from CREA or QPAREB are those presented as the composite benchmark or average prices for each city/province/region unless specified. They may be interchangeably called average home prices, though an average price may not be available for many regions outside Quebec.
MLS® Home Price Index (HPI)
The MLS® Home Price Index (HPI) is a real estate price index compiled by the Canadian Real Estate Association (CREA) that tracks the price of homes in your neighbourhood. It’s a quick way for Canadians to compare home prices in different parts of Canada and between different periods without having to factor in the unique characteristics of a particular property.
While market prices can vary from one month to the next based on seasonal factors, the Home Price Index (HPI) provides a more consistent view and tracks price trends over an extended period. The Home Price Index (HPI) is updated annually in May to reflect changes in real estate markets.
MLS® HPI is the most comprehensive and precise way to track a neighbourhood’s home price level and trends. MLS HPI uses over 15 years of data from the MLS® System and advanced statistical models to create a “typical” home based on the characteristics of homes purchased and sold. This benchmark home is tracked across all Canadian neighbourhoods and various types of homes.
Property Types
Detached homes, also known as single-family homes, are residential properties that stand alone and are not connected to other buildings. They are legal single residential units on their own parcel of land and have a separate title.
Semi-detached homes are characterized by their unique architectural design. Two houses are built side by side and share a common wall. Although sharing a building, semi-detached homes have their own parcel of land and separate legal titles.
Townhouses are residential dwellings typically characterized by narrow, tall structures, often sharing walls with neighbouring units. Although they may share yards or common elements with their neighbours, townhouses will have separate legal titles from any adjoining building. Townhouses can be purchased as freehold or leasehold within a condo or strata and may come with their own land parcel. Townhouses can be part of a low-rise or high-rise building.
Condo apartments, also known as condominiums, are residential properties that combine elements of apartments and individual homes. It is a unit within a larger building or complex owned by an individual who also shares ownership of common areas and amenities with other residents. Condo apartment owners have legal ownership of their units and can modify them within the guidelines set by the condominium association. Unlike a townhouse, condos do not offer exclusive use of outdoor space unless they come with a balcony or terrace. Condos can be part of a low-rise or high-rise building.
Plexes or multiplexes are unique residential buildings constructed into 2 to 6 units within a single structure. Traditionally, they have been designed as low-rise residential buildings where any unit is accessible via an external entrance with higher floors connected by staircases. Each unit will have a separate registration and title but may share common elements and co-ownership fees with the other multiplex owners. Plexes are common in Québec and older parts of Toronto.
Property Ownership Classes
A freehold is a type of property ownership where an individual or entity has complete and indefinite ownership rights over a property and its parcel of land. Common freehold property types include detached houses, semi-detached houses, farms, and townhouses, which are not part of condominium corporations.
A condominium or condo is a distinct type of property class that combines apartment living and individual homeownership elements. In a condominium, individual units are owned by the residents, while the common areas and amenities are shared among all the unit owners. This type of ownership gives you rights to your specific unit and some rights and responsibilities to the common areas, such as the hallways, elevators, garage, pool and rooftop patios.
A leasehold is a legal arrangement where a person or entity holds the right to use and occupy a property for a specific period, typically through a lease agreement. In some cases, the leaseholder may own the building or unit and rent the land from the landowner (landlord).
Strata insurance
Strata insurance is insurance that a strata or condominium uses to cover damages to common areas, assets and liabilities to the strata. It can also include fixtures built or installed as part of the original construction of each unit, even though these may not be common structures. Strata insurance can cover the following:
- Buildings and structures on the strata’s property, including common areas such as the garage, roof, lobby, pool, etc.,
- Liabilities for any property damage or bodily harm due to an injury suffered on a strata property,
- Which also includes fixtures in the standard unit or part of the original make of each unit.
Strata insurance generally does not cover personal belongings and appliances in a condo unit. Damage caused by individual unit owners (e.g., water damage due to a unit owner’s negligence) is typically covered under personal condo insurance.
Rental Values
Our monthly or year-over-year rental averages are sourced from Urbanation’s monthly Rentals.ca National Rental Report.
Mortgage Qualifying Criteria
Insured qualifying criteria are limited to a 39% gross debt service (GDS) ratio and up to 25 years of amortization. For insured mortgage transaction calculations, we have used a 20% downpayment, unless otherwise indicated, in our examples and excluded any mortgage default insurance (CMHC) premium. Uninsured qualifying criteria are limited to a 35% gross debt service (GDS) ratio and up to 30 years of amortization. Our examples use a 20% downpayment for uninsured mortgage transaction calculations. Unless otherwise indicated, a $100 monthly heating cost is attributed to the total monthly stress-tested payment. Municipal tax rates are the most recently shown on the applicable municipality’s website (1% used as default when unavailable or for a region with an unspecified mill rate). Mortgage default insurance is not permitted on purchases that have valuations of $1 million or more, amortizations exceeding 25 years, or on refinance transactions.
Regulatory Titles
In Ontario (FSRA), mortgage brokers and agents serve as the middle person between borrowers and lenders, helping clients find the most suitable mortgage options for their financing situation. A Mortgage Agent works under the supervision of a Mortgage Broker and assists in the mortgage application process. A Mortgage Broker may also be responsible for compliance requirements for their brokerage or a team.
The provinces of Quebec (AMF) and Newfoundland (Digital & Government Service NL) both exclusively utilize the designation of Mortgage Broker as a licensing designation.
British Columbia (BCFSA) has two distinct roles within the mortgage industry: the Submortgage Broker and the Mortgage Broker. These positions have specific responsibilities and functions that contribute to the overall process of securing mortgages for clients. The Submortgage Broker works under the supervision of a licensed Mortgage Broker and assists in various tasks, such as gathering client information, completing paperwork, and liaising with lenders. The Mortgage Broker oversees the entire mortgage application process, including assessing client needs, finding suitable mortgage options, negotiating terms, and ensuring compliance with regulations.
In Alberta (RECA) and New Brunswick (FCNB), the distinction between a Mortgage Associate and a Mortgage Broker lies in their roles and responsibilities within the mortgage industry. A Mortgage Associate typically works under the supervision of a Mortgage Broker and assists in the mortgage application process gathering necessary documentation, and providing support to clients. A Mortgage Broker is licensed to independently negotiate and arrange mortgage loans on behalf of clients, offering a more comprehensive range of mortgage options and expertise in the field.
In Saskatchewan (FCAA) and Nova Scotia (Government of Nova Scotia, Business Licensing), there are distinct roles for both Associate Mortgage Brokers and Mortgage Brokers. The critical difference lies in their level of experience and licensing requirements. Associate Mortgage Brokers work under the supervision of a licensed Mortgage Broker and are in the early stages of their career. They may assist with gathering client information and preparing mortgage applications. Mortgage Brokers have obtained the necessary qualifications and licences to operate independently and provide mortgage services directly to clients. They have the authority to negotiate mortgage terms, advise clients, and facilitate the mortgage process from start to finish.
In Manitoba (MSC), a Salesperson is primarily responsible for promoting and selling products or services, while an Authorised Official holds the authority to make legally binding decisions on behalf of the organization. These roles have different levels of authority and expertise, with the Salesperson focusing on sales and the Authorised Official having broader decision-making powers and acting as the liaison between the brokerage and the regulator.
For a complete list of licensing terms in Canada, please see the Mortgage Broker Regulators’ Council of Canada (MBRCC) published list.
nesto Mortgage Experts
Titles such as mortgage broker, mortgage agent, submortgage broker, mortgage salesperson, or principal broker are provincially regulated licensing terms with educational requirements specific to each province. Although they may all commonly be referred to as mortgage brokers, in Ontario, where mortgage agents are used as a designation, mortgage brokers or principal brokers have additional responsibility for compliance and training mortgage agents.
Licensed mortgage professionals often use the industry norm of “mortgage broker,” “broker,” or “advisor” to refer to themselves. However, disclosure requirements for licensed mortgage professionals’ titles vary across each province in Canada. These disclosures require mortgage brokers to adhere to specific rules when using titles to represent their qualifications and expertise. The provinces have regulations and guidelines that govern the use of titles by mortgage brokers. These regulations aim to ensure transparency and protect consumers in the mortgage industry.
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in this series Mortgage Forecasts and Trends
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