Toronto 
The Canadian housing market is expected to experience significant activity in 2025, driven by late 2024 interest rate cuts.
According to RE/MAX Canada’s 2025 Housing Market Outlook Report, national average residential prices are forecasted to rise by 5%, with sales increases anticipated in 33 of 37 surveyed regions, some by as much as 25%, fueled by late 2024 interest rate cuts and changes to the mortgage stress test.
Here are the highlights of the 2025 Housing Market Outlook Report:
- First-Time Buyers: First-time homebuyers are predicted to drive market activity in 81% of regions surveyed. Seven percent of Canadians identified as potential first-time buyers, reflecting growing optimism despite affordability challenges. Many are focusing on smaller properties, such as townhomes and bungalows.
- Consumer Sentiment: A Leger survey reveals that 73% of Canadians believe homeownership is the best investment. Confidence in real estate professionals is also growing, with 62% of respondents seeing value in working with brokers or agents, up 5% from 2024.
- Western Canada: Prices in British Columbia and the Prairies are expected to increase between 3% and 10%. Edmonton leads with a projected 10% rise, while Calgary anticipates a 5% increase. Seller’s markets are anticipated in Greater Vancouver and Victoria, with balanced conditions in Vancouver Island and Kelowna.
- Ontario: Mixed market conditions are predicted, with prices rising from 0.1% in Toronto to 10% in Simcoe County. Sellers’ markets will dominate regions like Sudbury and Windsor, while Peterborough and Hamilton will see buyers’ markets.
- Atlantic Canada: Price growth ranges from 1.5% in Charlottetown to 8% in Truro and Colchester. Sales activity is set to rise in Halifax and St. John’s, with first-time buyers focusing on single-detached homes.
Here is a summary of cities, their projected price changes, and average prices for 2025 based on the RE/MAX Housing Market Outlook:
| City/Region | Price Change (%) | 2025 Avg. Price ($) |
|---|---|---|
| Vancouver Island, BC | +4.0% | $758,064.30 |
| Victoria, BC | +4.0% | $1,004,009.80 |
| Greater Vancouver, BC | +7.0% | $1,383,501.40 |
| Kelowna/Central Okanagan, BC | +3.0% | $838,393.20 |
| Calgary, AB | +5.0% | $622,125.00 |
| Edmonton, AB | +10.0% | $475,022.90 |
| Regina, SK | +3.0% | $335,583.30 |
| Winnipeg, MB | +5.0% | $456,238.70 |
| Sudbury, ON | +5.0% | $487,986.50 |
| North Bay, ON | +5.0% | $471,535.10 |
| London, ON | +10.0% | $671,166.90 |
| Kitchener-Waterloo, ON | +6.0% | $817,013.02 |
| Simcoe County, ON | +10.0% | $884,675.00 |
| Hamilton, ON | +2.3% | $828,320.10 |
| Burlington, ON | +4.5% | $1,183,800.00 |
| Niagara, ON | +2.0% | $709,291.70 |
| Peterborough, ON | +5.0% | $654,728.60 |
| Kawartha Lakes, ON | +4.0% | $780,530.40 |
| Mississauga, ON | +6.0% | $1,129,878.40 |
| York Region, ON | +5.0% | $1,380,185.10 |
| Windsor, ON | +3.5% | $597,015.90 |
| Durham, ON | +5.0% | $969,697.10 |
| Brampton, ON | +6.0% | $1,072,629.90 |
| Toronto, ON | +0.1% | $1,115,381.30 |
| Ottawa, ON | +2.5% | $695,033.00 |
| Sault Ste. Marie, ON | +3.0% | $359,470.00 |
| Thunder Bay, ON | +3.0% | $363,144.00 |
| Muskoka, ON | +3.0% | $696,091.50 |
| Haliburton, ON | +5.0% | $546,309.90 |
| Kingston, ON | +5.0% | $671,421.50 |
| Kenora, ON | +2.5% | $333,402.80 |
| Fredericton, NB | +5.5% | $359,037.60 |
| Saint John, NB | +3.5% | $351,934.20 |
| Halifax, NS | +6.0% | $607,858.70 |
| Truro & Colchester, NS | +8.0% | $372,088.10 |
| Prince Edward Island | +1.5% | $380,625.00 |
| St. John’s, NL | +8.0% | $398,549.20 |
RE/MAX report also finds that buyers are prioritizing climate-resilient areas (47%) and exploring new neighborhoods (40%) to mitigate affordability challenges. Detached and semi-detached homes with income potential remain popular as Canadians adjust to evolving market conditions.
