Canada’s housing market is shifting gears after years of rapid change. According to the Canadian Real Estate Association (CREA), 2025 will be a year of modest cooling and stabilization, followed by a stronger rebound in 2026 as market conditions normalize.
Key Highlights
🏠 Home sales are forecast to reach about 469,500 units in 2025, a 3% decline from 2024.
💰 The average national home price is expected to dip 1.4% to roughly $676,700.
🌎 Market performance will vary by region — while Ontario and British Columbia may experience further price and sales declines, many other provinces are projected to see 4%–8% price growth in 2025.
📈 By 2026, CREA anticipates a rebound, with sales rising 7.7% to about 509,500 units and average prices climbing 3.2% to approximately $698,600.
⚠️ CREA notes there’s higher-than-usual uncertainty due to fluctuating interest rates, economic headwinds, and regional supply-demand imbalances.
What This Means for Buyers, Sellers & Investors
Buyers: 2025 could offer more choice and negotiating power, particularly outside major urban markets. However, affordability will remain challenging until interest rates ease further.
Sellers: In Ontario and B.C., expect longer listing times and softer prices. In contrast, sellers in regions with limited inventory — such as parts of the Prairies or Atlantic Canada — may still see steady demand.
Investors: Patience may pay off. 2026’s projected rebound suggests renewed opportunity for capital growth as economic stability returns.
Regional Nuance Matters
CREA emphasizes that national figures tell only part of the story. Local market conditions — such as job growth, housing supply, and migration patterns — will drive performance. Detached homes in expensive markets may cool faster, while affordable segments and smaller cities could stay resilient.
Looking Ahead
2025 appears to be a transition year for Canadian real estate — a period of recalibration before renewed growth. With borrowing costs expected to gradually ease, and population growth continuing to support long-term demand, the outlook for 2026 is cautiously optimistic.
If you’re planning to buy, sell, or invest, this is a good time to watch local data closely and prepare for shifting opportunities as the market regains momentum. Contact me to find discuss opportunities for you @ 6134048706
Source: CREA