National Market Report Summary
- The average selling price of a home in Canada increased by 0.1% year-over-year to $709,200 in January 2025.
- The average selling price of a single-family home in Canada increased by 0.9% year-over-year to $786,200 in January 2025.
- The average selling price of a townhouse/multiplex in Canada decreased by 0.7% year-over-year to $648,900 in January 2025.
- The average selling price of a condo in Canada decreased by 3.0% year-over-year to $507,400 in January 2025.
- The average rent in Canada decreased by 2.7% year-over-year to $2,088 for January 2025.
- May 8, 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 $709,200 for the month of January 2025, that’s increased by 0.5% compared to the previous month. On a year-over-year basis, Canadian home prices have increased 0.1% over the last 12 months.
Single-family Home Prices
The average selling price of a single-family home in Canada was $786,200 for the month of January 2025, that’s increased by 0.6% compared to the previous month. On a year-over-year basis, single-family home prices in Canada have increased by 0.9% over the last 12 months.
Townhouse and Multiplex Prices
The average selling price of a townhouse in Canada was $648,900 for the month of January 2025, that’s unchanged by 0.0% compared to the previous month. On a year-over-year basis, the price of a townhouse in Canada has decreased by 0.7% over the last 12 months.
Condo Prices
The average selling price of a condo in Canada was $507,400 for the month of January 2025, that’s decreased by 0.1% compared to the previous month. On a year-over-year basis, the price of a condo in Canada has decreased 3.0% 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 January 2025 was $709,200, and it increased by 0.1% compared to a year ago.
CREA also reported a sales-to-new-listings ratio (SNLR) of 51%, indicating a balanced market nationally for January 2025.
Canadian Homebuyers Stay Cautious Despite Early Surge in Listings
As 2025 began, the Canadian housing market experienced an unexpected surge in new listings, with an 11% increase from December, marking one of the most significant monthly jumps since the late 1980s, excluding pandemic-related volatility. Sellers appeared eager to enter the market ahead of the traditionally busy spring season, possibly anticipating improved conditions due to lower interest rates or looking to sell before economic uncertainty intensifies. However, despite this influx of new supply, home sales slowed, with a 3.3% drop in January—a decline largely attributed to a weakening in activity during the last week of the month. Market analysts point to rising concerns over potential US trade tariffs, which could impact employment and consumer confidence, as a key factor causing buyers to hesitate.
Despite the drop in sales, home prices have remained relatively stable. The MLS Home Price Index (HPI) edged down by 0.08% month-over-month, while year-over-year growth was minimal at 0.07%. While the increase in available listings has eased supply constraints, affordability challenges persist, particularly in high-priced markets such as British Columbia and Ontario, where home values remain out of reach for many prospective buyers. In contrast, more affordable regions like Atlantic Canada, Quebec, and the Prairies have seen stronger demand and rising prices, with cities like Edmonton, Saint John, and Fredericton leading the way in price appreciation.
Key Market Trends Driving the Shift
Several factors are shaping the current state of Canada’s housing market:
- Increased Inventory: The number of homes for sale rose by 12.7% year-over-year, offering buyers more choices than in recent years.
- Balanced Market Conditions: The sales-to-new-listings ratio hovered around 50%, down from the mid-to-high 50s in late 2024, signalling a shift away from seller-dominated conditions.
- More affordable regions (Atlantic Canada, Montréal, Québec, and the Prairies) continue to experience strong demand and price appreciation.
- High-priced markets (Toronto, Vancouver, Southern Ontario) remain volatile, with condo prices in the GTA remaining flat or declining.
- Impact of Economic Uncertainty: Buyers are becoming more cautious due to concerns over tariffs, inflation, and overall economic stability.
First-time homebuyers (FTHB) face considerable challenges despite declining borrowing costs. While mortgage rates are expected to fall further in 2025, many prospective buyers still struggle to save for a down payment, especially in cities where housing prices have skyrocketed. Halifax, for example, has seen its average home price rise to $575,000, making entry into the market difficult for those with limited savings. With high home prices keeping many buyers sidelined, demand for rental properties remains strong. Developers have responded by focusing on multi-unit rental accommodations rather than condominiums, as rising construction costs and uncertain profit margins have made large-scale condo developments less attractive.
Economic instability continues to play a critical role in shaping the market. The looming threat of a US-Canada trade war has emerged as a significant risk factor, leading some buyers to delay their purchasing decisions due to concerns over potential job losses and declining wages. Although lower mortgage rates are expected to support demand over time, homeowners facing mortgage renewals in 2025 could experience significant financial strain. Many who secured ultra-low rates during the pandemic may now face substantial increases in their monthly payments, which could further influence inventory levels as some may be forced to sell.
The Canadian housing market appears to be on a slow and uneven path to recovery. The combination of lower interest rates, increased supply, and ongoing affordability challenges means regional disparities will continue to shape market dynamics. More affordable regions will likely gain the strongest, while high-cost markets may remain volatile. For buyers and sellers navigating these conditions, working with real estate and mortgage professionals to develop sound financial strategies will be essential in deciding your most significant purchase.
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Transactions – Number of Sales
The number of sales in Canada was 40,541 during January 2025, that’s decreased by 3.3% compared to the previous month. On a year-over-year basis, sales in Canada have increased by 3.7% over the last 12 months.
New Listings
The number of new listings in Canada was 79,635 during January 2025, that’s increased by 11.0% compared to the previous month. On a year-over-year basis, new listings in Canada have increased by 17.5% over the last 12 months.
Real Estate Market
The sales to new listings ratio (SNLR) in Canada was 51% during January 2025, indicating a balanced market. On a monthly basis, that’s decreased by 12.9% compared to the previous month. Canada’s yearly sales to new listings ratio has decreased by 11.8% 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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Housing Market Outlook for Rents: Average Rents in Canada Drop to 18-Month Low
The Canadian rental market experienced a notable decline in January 2025, with average asking rents dropping to $2,100, a 4.4% decrease year over year—the lowest level recorded in 18 months. This decline follows four consecutive months of annual rent decreases, marking a shift after 38 months of rent increases.
Despite the recent downturn, rents remain 5.2% higher than two years ago and 16.4% higher than three years ago. The decline was most pronounced in the secondary rental market, where condo rents fell by 6.5% to $2,219, while houses and townhouses saw an 8.9% drop to $2,144 on average.
Rental Prices Across Major Cities
Canada’s most expensive cities continue to see high rental prices, but some have experienced significant annual declines:
- Vancouver remains the priciest city, with an average rent of $2,522 for a one-bedroom unit, marking a 6.0% decrease from last year.
- Toronto follows, with a one-bedroom rent of $2,353, down 6.3% annually.
- Burnaby saw the steepest decline, with one-bedroom rents falling 9.1% year-over-year.
- On the other hand, Niagara Falls and Quebec City were among the few cities experiencing rent increases, with 10.2% and 6.9% growth, respectively.
Regional Trends and the Areas Hit Hardest
Ontario and British Columbia continue to lead the country in rental price declines. Ontario experienced a 5.2% annual drop in apartment rents, bringing the provincial average to $2,329. Despite remaining the priciest province, British Columbia saw a 3% decline to $2,463. However, three of the five most expensive rental markets (Toronto, Oakville, and Mississauga) remain in Ontario, with the other two being Vancouver and Burnaby in BC.
Conversely, rents in more affordable provinces like Alberta, Saskatchewan, and Manitoba increased between 2% and 3%, reflecting continued demand in these regions.
In the purpose-built rental market, average rents declined more modestly, falling 1.7% to $2,070. However, demand for certain unit types remained high:
- Studio apartments saw a 0.5% rent increase, reaching $1,583.
- Three-bedroom units experienced a 2.1% annual increase, now averaging $2,654, as demand for larger rental spaces remained strong.
A Shifting Rental Market
According to Urbanation Inc. and Rentals.ca, rental prices in Canada may continue to decline in the coming months due to several key factors:
- A surge in new rental housing supply, easing pressure on existing stock and lowering competition.
- Reduced immigration targets, slowing demand growth in major urban centres.
- Economic uncertainty may discourage renters from paying premium prices in expensive markets.
Despite this cooling trend, rental affordability remains challenging, with prices still significantly higher than pre-pandemic levels. As renters seek ways to lower housing costs, the demand for smaller, more affordable units and shared accommodations is expected to grow.
For those considering moving or entering the housing market, monitoring these trends and exploring mortgage options will be key. Contact nesto mortgage experts today to get expert advice on making your transition to homeownership smoother.
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Canada Market Rents Summary
The average rent in Canada was $2,088 for the month of January 2025, which decreased by 2.7% on a year-over-year basis.
The average rent for a bachelor apartment in Canada was $1,594 for the month of January 2025, which unchanged by 0.0% on a year-over-year basis.
The average rent for a 1-bedroom apartment in Canada was $1,892 for the month of January 2025, which decreased by 3.3% on a year-over-year basis.
The average rent for a 2-bedroom apartment in Canada was $2,269 for the month of January 2025, which decreased by 2.8% on a year-over-year basis.
The average rent for a 3-bedroom apartment in Canada was $1,892 for the month of January 2025, which decreased by 2.8% 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 $522.77 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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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, May 8, 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.
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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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