Canada's housing market shifted in 2025 as affordability rose.

National home-price indicators slipped in 2025, with average prices down 0.5% and MLS benchmark prices down 4.0%, while regions diverged: Ontario and British Columbia recorded notable declines and Quebec posted price gains.

Canada's housing market diverged across provinces in 2025, and affordability emerged as a key factor shaping buyer choices. By December 2025 national indicators were in negative territory. Average home prices fell 0.5% year‑over‑year and MLS benchmark prices declined 4.0%. Sales were subdued, with 470,314 transactions recorded for the year. What we know: - National indicators: average prices down 0.5% and MLS benchmark prices down 4.0% in December 2025. - Ontario: average prices fell about 4.0% and benchmark prices fell 5.6%; Greater Toronto Area prices declined roughly 6%, with some northern GTA communities seeing median drops of more than 10%. - British Columbia: average prices fell 5.6% and benchmark prices fell 6.4%, with Vancouver recording nine consecutive months of benchmark declines. - Quebec and other provinces: Quebec's average prices rose 8.0% and benchmark prices rose 7.1%, while several less-populated provinces also recorded annual price gains. - Alberta and sales: Alberta cooled unevenly (Calgary roughly flat, Edmonton up about 4.5%), and total sales of 470,314 were the third-lowest annual total since 2013. Summary: Affordability and a decline in speculative demand drove regional shifts in 2025, leaving national price measures lower overall. Forecasts cited in the article expect a modest improvement by the end of 2026 — Royal Bank of Canada expects conditions to turn modestly positive and Toronto-Dominion Bank projects about 4% price growth — but any recovery is described as fragile and dependent on interest-rate trends and developments in the United States. Undetermined at this time.