Recent months have seen a noticeable decline in home prices across Canada, creating improved opportunities for buyers. However, some regions continue to evolve in favor of sellers due to varying local market conditions.
According to the Canadian Real Estate Association, home sales in January fell by 16.2% compared with the same period last year. The national average sale price reached $652,941, representing a 2.6% decrease year over year.
Despite the decline, the association expects the national average home price to rise by 2.8% this year to reach $698,881. Still, market trends vary significantly from one region to another.
The price index recorded its largest drop in July 2023 at 4%, but began stabilizing by mid-2025. Although the overall market experienced a slowdown, notable regional disparities were observed, with some areas managing to post clear price gains.
Many major cities outside Toronto and Vancouver are showing clear signs of stabilization. Cities such as Quebec City and several Prairie markets have seen a meaningful rebound.
Quebec City recorded the strongest annual growth at 14%, followed by Regina at 11%, Montreal at 9%, and Winnipeg at 8%, placing these cities among the top performers nationwide.
Several factors supported these increases, including relative affordability, favorable employment conditions, and positive demographic trends. On the other hand, markets such as Hamilton, Victoria, Toronto, and Vancouver experienced price declines of varying degrees.
Toronto fell by 6%, while Hamilton and Victoria each dropped by 5%, and Vancouver declined by 4%. Victoria, in particular, recorded an additional 2% decrease compared with the previous month.
Regarding outlook, officials believe that cities that began the year with the strongest performance—namely Quebec City, Regina, and Montreal—are likely to continue posting gains in the coming period, based on projections from the Canada Mortgage and Housing Corporation.
