Market Conditions Show Signs of Recovery
After a period of uncertainty and reduced buyer activity in early 2025, the Canadian housing market is showing renewed momentum this fall. Improved affordability and rising inventory levels are giving cautious buyers new reasons to re-enter the market.
According to data from RE/MAX brokers and agents, home sales declined year-over-year in 62% of markets between January 1 and July 31, 2025. While sales slowed due to economic pressures, pricing trends varied by region. Atlantic Canada and the Prairies saw home prices rise, while Ontario and British Columbia experienced declines.
Unlike the tight inventory challenges of 2024, listings increased in Ontario and BC this year, creating conditions that now favour buyers. Conversely, tighter supply in the Prairies and Atlantic Canada continues to benefit sellers.
“Canada’s housing market reflects a balance of resilience and caution. Buyer-friendly conditions in Ontario and BC stand in contrast to seller-driven markets across Atlantic Canada and the Prairies,” explains Don Kottick, President of RE/MAX Canada. “Regardless of conditions, Canadians continue to value homeownership, and working with an experienced agent helps buyers and sellers strategize successfully.”
First-Time Homebuyers: Changing Demographics and Challenges
In 2024, first-time homebuyers were the driving force in many Canadian markets. By 2025, however, their role has shifted. Families, retirees, and new Canadians are now leading activity, while first-time buyers are more cautious.
- 7% of Canadians plan to purchase their first home in the next 12 months.
- This group is trending older, often entering the market in their late-20s to 40s.
- 28% say a 5–10% drop in property prices would make a meaningful difference in affordability.
- 68% say lower interest rates of 0.5% to 1% would help them feel ready to buy.
A Leger survey found that many first-time buyers are self-reliant, with only one in 10 receiving financial gifts for their purchase. Instead, buyers are relying on disciplined savings, co-ownership models, and creative financing strategies.
“These insights show a new generation of buyers who are older, more financially disciplined, but still waiting for the market to meet them halfway,” says Kottick. “The rise in inventory gives them more choice, better negotiating power, and more time to make the right decision.”
Sellers Enter the Fall Market with Realism and Confidence
While economic uncertainty remains, Canadian home sellers are approaching the fall market with renewed confidence. 8% of Canadians plan to sell their home in the next year, and 63% believe they will achieve their asking price.
This aligns with a more balanced market, where pricing strategies, home staging, and timing are critical. With home prices expected to dip slightly by the end of 2025, informed sellers are positioning themselves for success by working with professionals who understand local conditions.
“Our Fall Housing Market Update shows a 25% surge in conditional sales across 33 of 37 markets surveyed, supported by improved affordability,” adds Kottick. “Buyers are becoming more active, and well-prepared sellers are reaping the rewards.”
Economic Outlook: Rising Optimism Across Canada
The broader Canadian economy is also stabilizing, contributing to buyer and seller confidence:
- 46% of Canadians expect the economy to remain stable over the next six months.
- 92% of homeowners still view real estate as a strong long-term investment.
- 38% describe the economy as strong, showing a narrowing gap between optimism and pessimism.
Government initiatives aimed at boosting housing supply are also fueling optimism. 46% of Canadians believe new policies will enhance affordability within three to five years, signaling hope for a more balanced future market.
The Importance of Local Expertise
As affordability challenges continue, 53% of Canadians believe working with a local real estate agent is key to finding opportunities. Market conditions vary widely between provinces, cities, and even neighbourhoods. A knowledgeable agent can provide insight into affordability pockets, buyer strategies, and seller positioning.
Regional Housing Market Insights for Fall 2025
Between January 1 and July 31, 2025, Canadian housing markets showed mixed results. Looking ahead:
- 26.4% of markets are expected to favour sellers.
- 38.2% of markets are firmly in buyer’s territory.
This regional split highlights the need for customized strategies tailored to each local market.
Final Takeaway
The Canadian housing market in Fall 2025 is defined by shifting dynamics: cautious buyers returning thanks to improved affordability, sellers adjusting expectations, and a growing sense of economic optimism. With regional differences shaping market opportunities, buyers and sellers alike can benefit from expert guidance to navigate this evolving landscape.
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