Canadian Home Sales Rise as Prices Flatline in Big Cities

Canada’s housing market continued to stabilize in the third quarter of 2025, with home sales climbing even as prices stayed flat.

Royal LePage’s latest House Price Survey and Market Forecast shows the national aggregate home price holding steady year-over-year at $816,500, down 1.2% from the previous quarter.

Royal LePage CEO Phil Soper said the market is “shifting toward balance” as rising listings, easing prices, and lower borrowing costs help restore affordability.

“For the first time in years, buyers have real choice and negotiating power,” Soper said. “With further rate cuts expected into early 2026, we anticipate noticeably stronger activity by spring.”

Regional Divide: Montreal Gains, Toronto and Vancouver Slide

Montreal led the way with prices up 4.9% year-over-year to $635,000, supported by renewed demand for the city core and a growing inventory of homes.

In contrast, Toronto and Vancouver saw aggregate prices fall 3.5% and 3.1%, to $1,114,900 and $1,195,500, as active listings outpaced sales.

“The GTA market remains firmly in favour of buyers,” said Shawn Zigelstein of Royal LePage Your Community Realty. “There’s more choice and more leverage for those ready to buy.”

Policy and Rate Shifts Offer Relief

The Bank of Canada’s September rate cut to 2.5% has provided some relief for borrowers, with mortgage rates dipping back into the 3% range. Inflation has stayed within target for 20 consecutive months — a sign of stability.

Meanwhile, Ottawa’s Build Canada Homes initiative — promising 4,000 factory-built units — was praised as a positive step, though Soper cautioned it’s “a catalyst, not a solution.”

Outlook: Gradual Growth Ahead

Royal LePage now expects a modest 1% rise in home prices in the fourth quarter, with growth capped by softness in Toronto and Vancouver.

Mortgage broker Chris Allard of Smart Debt Mortgages said affordability will continue to drive buying decisions.

“Younger buyers can’t afford the core, so suburbia and outlying areas will stay strong,” Allard said.

After years of volatility, the market is finding balance — with steady demand, better affordability, and a cautiously optimistic outlook heading into 2026.

Source: Canadian Mortgage Professional