The average home price in Canada remained largely unchanged in the third quarter of 2025, increasing just 0.1 per cent year-over-year to $816,500.
However, according to the Royal LePage House Price Survey and Market Forecast, on a quarter-over-quarter basis, the national average home price posted a decline of 1.2 per cent. The dip was driven by depreciation in many major markets across the country over the summer.
“Canada’s housing market is shifting toward balance, as easing prices, rising listings and renewed rate cuts improve affordability across most regions,” said Phil Soper, president and CEO, Royal LePage. “For the first time in years, buyers – especially in previously supply-strapped markets – have real choice and negotiating power. With confidence returning and further rate reductions expected into early 2026, we anticipate noticeably stronger activity by the spring.”
Following a slower-than-usual start to the year, home sales picked up late in the spring and have consistently increased over the last five months, according to the Canadian Real Estate Association (CREA).
“Affordability is improving and the economic backdrop remains remarkably stable, yet consumer confidence is lagging,” added Soper. “Many buyers remain hesitant – some worried about broader economic uncertainty, others waiting to see if prices dip a little further before stepping in.”
When broken out by housing type, the national median price of a single-family detached home increased 1.2 per cent year over year to $860,600, while the median price of a condominium slipped 1.6 per cent to $580,700. On a quarter-over-quarter basis, the median price of a single-family detached home and a condominium declined 1.1 and 1.9 per cent, respectively.
National home prices are down about five per cent from their peak during spring 2022. The decline is mainly due to falling prices in the urban centres of Toronto and Vancouver, where prices currently sit more than 12 per cent below their peak. Meanwhile, home prices have continued to appreciate in Quebec, the Prairies and Atlantic Canada.
“Buyer sentiment is being influenced by a complex mix of economic and psychological factors,” said Soper. “Despite materially improved affordability in major cities, many Canadians – particularly younger ones – remain cautious amid high post-pandemic living costs, perceived job uncertainty, and general unease about our economic prospects. It’s understandable that some are waiting before making such a significant purchase.”
According to a Royal LePage survey from September 2024, conducted by Burson, more than four in five Canadians who say they are actively working towards the purchase of their first home say they are planning to hold off for at least another year.
