Across Canada, the housing market experienced a startling slowdown in 2025. Despite falling prices, decreasing mortgage rates, and a surge in available properties, home sales plummeted to levels not seen in decades, painting a picture of widespread economic hesitation.
The Greater Toronto Area bore witness to a particularly dramatic shift, with just 62,433 homes changing hands. This figure represented an 11.2% decline from the previous year, marking the lowest sales volume since 2000 when 60,783 properties were sold.
Economic uncertainty cast a long shadow over potential buyers throughout the year. New tariffs imposed on Canadian goods created a climate of instability, directly impacting consumer confidence and their willingness to make significant long-term investments.
Experts emphasized the critical need for economic reassurance. A stable job market and renewed confidence in the future were identified as essential catalysts for a potential market rebound, even with increased affordability.
While sales faltered, the number of properties listed for sale rose by 10.1% in the GTA, contributing to a 4.7% decrease in the average home price, settling at $1,067,968. This offered a glimmer of hope, yet failed to ignite substantial buyer activity.
The downturn wasn’t confined to Toronto. Metropolitan Vancouver saw a 10.4% drop in sales, totaling 23,800 – the lowest number in over two decades. Realtors reported a record-breaking influx of listings, surpassing previous highs set in the mid-1990s.
Calgary experienced an even steeper decline, with a 16% decrease in sales as over 40,000 homes entered the market. The surge in listings, coupled with dwindling sales, underscored the widespread challenges facing the Canadian housing sector.
Despite the bleak numbers, some industry leaders pointed to emerging conditions that could signal a future recovery. Lower prices and reduced mortgage rates were seen as positive steps, awaiting only a resurgence in consumer confidence.
December proved to be a particularly weak month, with GTA sales falling another 8.9% compared to the previous year, ending 2025 on a decidedly subdued note.
Calls for government intervention grew louder as affordability became a paramount concern for many Canadians. Industry representatives urged federal, provincial, and municipal authorities to implement policies that would provide financial relief to families and individuals.
The need for “financial breathing room” was emphasized, with a focus on tax policies designed to put more money back into the pockets of consumers and restore trust in the economy.
New home sales continued a worrying 22-month downward spiral, with November seeing a staggering 35% year-over-year decrease and a drop 83% below the 10-year average. Only 510 new homes were sold.
Experts described the situation as “grim,” highlighting the significant affordability barriers facing potential buyers and acknowledging the limited capacity for builders to reduce costs in the short term.
