written by YOUSAF IQBAL, Head of IQI Canada

Canada’s housing market remained steady yet subdued in August 2025. The national average home price edged up to C$672,800, but experts still anticipate a 2% annual decline. Affordability remains a major challenge, with recovery to pre-pandemic levels not expected for at least two years, even amid interest rate cuts. A growing housing supply is easing pressure on prices, encouraging cautious re-entry from first-time buyers. Meanwhile, rental growth has softened due to reduced immigration, contributing to a more balanced but affordability-constrained environment for both buyers and investors. 

Regionally, market dynamics vary. In the Greater Toronto Area (GTA), sales rose by 2.3% and listings increased 9.4%, while average prices dropped 5.2% to $1.02 million—creating a more competitive landscape. Metro Vancouver saw a 2.9% increase in sales and a 17.6% surge in listings, but benchmark prices fell 3.8% year-on-year to $1.15 million. Detached and townhouse segments saw improvement, while apartment demand lagged. In contrast, Quebec had its busiest August since 2020, with a 10% rise in transactions and strong price growth across all property types, reinforcing its status as a seller’s market. 

Source by FSMI