Canadian homebuyers largely remained on the sidelines during the second quarter of 2025, as ongoing economic uncertainty tempered housing market activity across the country, according to a new report from Royal LePage.
Nationally, the aggregate home price inched up just 0.3% compared to the same period last year and dipped 0.4% from the first quarter. However, these modest national figures conceal significant regional disparities.
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“Canada’s housing landscape is made up of many distinct markets, and that’s especially evident this year,” said Phil Soper, president and CEO of Royal LePage.
Home values fell in the country’s most expensive real estate markets. In Toronto, prices were down 3.0% year-over-year, while Vancouver saw a 2.6% drop. Meanwhile, Quebec City stood out with a sharp 13.5% annual price increase, driven by a tight inventory and strong demand, according to Michèle Fournier, vice-president and broker at Royal LePage Inter-Québec.
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“There simply aren’t enough homes to meet buyer demand, which continues to push prices higher across all types of properties,” Fournier explained.
Toronto’s market showed mixed results depending on property type. Condo prices declined 5.6% year-over-year, while detached single-family homes saw a smaller drop of 1.2%. Despite the cooling, the Greater Toronto Area remains one of Canada’s priciest markets, with the median price for a single-family home at $1,448,700 and condos at $699,700.
Vancouver experienced more uniform price drops, with detached homes down 2.4% to a median price of $1,740,400, and condos falling 2.3% to $759,400.
Soper noted that some relief in housing affordability is beginning to appear. “We’re seeing wage growth outpace home prices in several markets, and interest rates have eased over the past year. Still, these improvements are fragile. Long-term affordability depends on significantly expanding Canada’s housing supply.”
From Q2 2024 to Q2 2025, prices climbed 7.5% in Edmonton, and rose more modestly in Montreal and Regina (3.5%), Halifax (3.4%), and Winnipeg (3.1%). Calgary and Ottawa remained mostly flat.
Commenting on Edmonton’s relatively strong performance, Tom Shearer, broker and owner of Royal LePage Noralta Real Estate, emphasized the importance of realistic pricing. “Sellers are still optimistic, but homes that are priced too high are being overlooked, as buyers now have more choices.”
Looking ahead, Royal LePage has lowered its full-year home price growth forecast from 5% to 3.5%. The firm expects Quebec City, Edmonton, Halifax, and Regina to lead gains with increases of 7% or more. By contrast, Toronto and Vancouver are projected to see smaller price gains of 2% and 1.5%, respectively.
“With global economic headwinds and a cautious domestic outlook, we anticipate a summer of slow and uneven progress across regional markets, rather than a nationwide surge,” Soper concluded.
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