Are House Prices Dropping in the Canadian Housing Market in 2025?

Many Canadian families are asking this question as mortgage rates gradually decline, market stability returns, and economic uncertainty continues. Understanding current trends can help homebuyers and sellers make informed decisions. At Homes By Neeta, we provide insights into key Canadian markets and practical advice for buyers and sellers alike.

Housing Affordability in Canada

Many Canadian households are waiting for interest rates to drop further and for clarity on trade and economic conditions. However, declining home prices and lower mortgage costs are creating opportunities for buyers across the country.

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Table of Contents

1. Current Trends in the Canadian Housing Market
2. Fraser Valley, British Columbia
3. Vancouver, British Columbia
4. Hamilton-Burlington, Ontario
5. Toronto, Ontario
   
   

Current Trends in the Canadian Housing Market

As of mid-2025, the Canadian housing market shows modest price adjustments. According to Statistics Canada, the average five-year conventional mortgage rate is around 5%. Benchmark home prices have declined nearly 4% year-over-year, while the national average home price is about $692,000, down over 1% from June 2024.

Shaun Cathcart, senior economist at CREA, notes that while overall prices are steady, some regions are seeing declines, and economic uncertainties could continue to affect the market.

Fraser Valley, British Columbia

The Fraser Valley has experienced a small but noticeable drop in home prices:

●     Average Benchmark Price: $951,500 (down >1% YoY)

●     Single Family Detached: $1,458,600 (down 4.6%)

●     Townhome: $824,400 (down 3.1%)

●     Apartments: $526,500 (down 4.5%)

According to Tore Jacobsen, Chair of the Fraser Valley Real Estate Board:
 "For buyers who can tolerate the current economic uncertainty, this market offers some very real opportunities, especially for first-time buyers."

Vancouver, British Columbia

Vancouver’s housing market is showing small declines despite improving momentum:

●     Composite Benchmark Price: $1,173,100 (down ~3% YoY)

●     Detached Homes: $1,994,500 (down 3.2%)

●     Attached Homes: $1,103,900 (down 3%)

●     Apartments: $748,400 (down 3.2%)

Andrew Lis from Greater Vancouver Realtors notes that inventory is balanced, mortgage rates are lower, and buyers can benefit from favorable conditions.

Hamilton-Burlington, Ontario

Hamilton-Burlington shows some of the largest declines in Ontario:

●     Benchmark Price: $776,300 (down ~9% YoY)

●     Detached: $1,000,949 (down 3.3%)

●     Semi-Detached: $763,625 (down 0.5%)

●     Townhome: $716,000 (down 3.9%)

●     Apartment: $471,000 (down 11.2%)

●     Mobile: $24,000 (down 13.6%)

According to Nicolas von Bredow:
 "Growing inventory levels and softer prices present a unique opportunity for buyers with stable income and savings."

Toronto, Ontario

Toronto’s real estate market offers better affordability despite falling prices:

●     Composite Benchmark Price: Down 5.5% YoY

●     Detached: $1,641,868 (down 6.5%)

●     Semi-Detached: $1,278,434 (down 6%)

●     Townhome: $846,121 (down 5.3%)

●     Condo: $731,232 (down 4.3%)

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FAQs on the Canadian Housing Market 2025

1. Are house prices dropping in Canada in 2025?
 Yes, certain regions are experiencing price declines, while others remain steady.

2. Which Canadian cities have the largest home price drops?
 Hamilton-Burlington, Toronto, Vancouver, and Fraser Valley have seen notable declines.

3. How are mortgage rates affecting buyers?
 Lower rates are helping buyers afford homes and increase purchasing power.

4. Is this a good time for first-time buyers?
 Yes, declining prices and improved affordability create opportunities for first-time buyers.

5. Are condo prices dropping too?
 Yes, condo prices have decreased slightly in major cities like Vancouver and Toronto.

6. What’s the average price of a home in Canada in 2025?
 The national average is around $692,000.

7. Are detached homes more affected than condos?
 Detached homes in some regions show larger declines, but condos are also experiencing slight drops.

8. How does economic uncertainty affect the market?
 Global and local economic concerns can slow market recovery and create price fluctuations.

9. Should buyers wait for further price drops?
 It depends on financial readiness; markets may continue to adjust gradually.