Recent data highlights a gradual uptick in activity across various Canadian housing markets as of August 2025. This recovery shows signs of strengthening in several regions. However, price movements remain inconsistent. Declines persist in areas facing high affordability issues and excess inventory buildup.

Initial figures from regional real estate associations reveal increased home sales from earlier lows this year in key cities such as Vancouver, Calgary, Edmonton, and Montreal. Still, sales volumes in Calgary and Edmonton have not yet reached last year's figures. In Toronto, the upward trend experienced a brief halt last month. These patterns align with expectations for a cautious rebound in market sentiment through the latter part of 2025. This could pave the way for more robust demand heading into 2026. Price variations are likely to continue short-term due to differing supply and demand dynamics across provinces. In much of the Prairies, Quebec, and sections of Atlantic Canada, balanced or even constrained markets are pushing property values upward. In contrast, elevated stock levels are pulling prices down in Ontario and British Columbia.

Statistics indicate drops in the MLS Home Price Index for locations including Toronto, Hamilton, Calgary, Edmonton, Fraser Valley, and Vancouver. These areas are dealing with substantial inventory pressures. Robust building activity has played a key role in expanding available options in Calgary and Edmonton.

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Temporary Slowdown in Toronto Region Housing Activity

In August, the Toronto market experienced a minor setback following several months of steady growth. Seasonally adjusted home resales decreased by 1.8 percent from July, influenced partly by ongoing weakness in the condominium segment. On a year-over-year basis, resales showed a 2.3 percent increase. This dip appears to be a short-lived interruption in the broader recovery trajectory. Factors like prior reductions in interest rates, recent price adjustments, growing inventory, and reduced worries about trade disputes are expected to encourage more transactions over time. A gentle price adjustment continued last month across the board. The composite MLS Home Price Index slipped 0.1 percent from July on a seasonally adjusted basis, reaching $978,100. This extends a downward pattern that has lasted a full year. Condominium prices saw the steepest annual drop at 7 percent. Other property types, such as single-detached homes, also declined by 5.6 percent year-over-year. Property values are projected to face ongoing downward pressure as the market regains stability. Affordability is improving but remains a significant hurdle for many potential buyers.

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Montreal Region Sees Boost in Sales After Extended Quiet Period

An influx of new listings in Montreal sparked heightened transaction activity in August. Estimates suggest new listings rose over 8 percent and home resales increased by more than 5 percent from July, both seasonally adjusted. This marks the initial breakthrough from a prolonged period of stagnation this year. Prospective buyers are keen to complete purchases. However, consistent price rises, limited availability, and tight market conditions have created obstacles. The future path may involve some fluctuations. Additional sales increases will rely heavily on the volume and variety of properties entering the market. Buyers watching their budgets will act primarily when appropriate choices become available. Such conditions are anticipated to support continued price growth. Yet, affordability pressures might slow the rate of increases. Median prices for single-family homes climbed 7.3 percent year-over-year, while condominiums rose 3.7 percent.

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Building Momentum in Vancouver Region Recovery

The Vancouver market's rebound accelerated in August, though it remains in the preliminary phase. Home resales are estimated to have grown nearly 6 percent from July, continuing a streak of three consecutive monthly gains. Individuals who delayed home searches amid earlier trade conflicts this year are re-entering the market. Reduced trade uncertainties, combined with greater property availability and falling prices, are probable motivators. Current active listings stand close to their peak over the past decade, intensifying seller competition. This environment has contributed to a steady drop in the MLS Home Price Index throughout the year. In August, the index decreased 3.8 percent compared to the previous year. Nevertheless, the resurgence in sales has helped align supply and demand more closely. Further improvements in market balance could ease the intensity of price reductions. Affordability remains a critical barrier, limiting buyers' capacity to offer higher amounts.

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Calgary Market Turns Corner on Sales, Prices Lag Behind

Calgary has witnessed a recent rise in transactions over the last two months, signaling a shift after almost two years of declines. August brought a strong 8 percent increase from July, based on estimates. Despite this, overall activity stayed below year-ago levels. This sales improvement has not yet affected pricing, which continues to feel the effects of expanded supply. Numerous new home completions starting in early 2024 have provided buyers with additional choices and stronger negotiating positions. As a result, the MLS Home Price Index fell 4.1 percent year-over-year in August. Sustained demand growth could alter this dynamic. Rising market optimism and diminishing economic concerns are expected to aid in price stabilization. Housing construction remains at near-record levels and is set to keep adding to inventory. Consequently, significant price gains appear unlikely in the immediate future.

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For those navigating these evolving Canadian real estate trends, staying informed on local conditions can help in making sound decisions. As markets adjust unevenly, opportunities may arise in regions with stabilizing or growing activity. Ready to explore your options? Contact Coldwell Banker Horizon Realty today to discuss current listings and personalized advice for buying or selling in your area.

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Source: RBC Economics Report