Canadian Real Estate Prices Hit New Record Highs in Most Provinces
The comments below are an edited and abridged synopsis of an article by CREA; Better Dwelling
Canadian Real Estate Price Trends 2025: Is The Housing Correction Just A Regional Mirage?
Recent headlines have focused on the significant correction in Canadian home prices, but the story isn’t as broad-based as it seems. According to new CREA data, June saw the national composite benchmark fall slightly by 0.2% to $688,600, continuing what appears to be a double-digit price correction. However, a closer look at Canadian Real Estate Price Trends 2025 reveals that most of this decline is due to steep drops in just two provinces—Ontario and British Columbia—while most provinces are still hitting record highs.
Nationally, home prices are down 17.8% from the record peak, a drop of $148,800. Yet they remain 26.7% above 2019 levels, retaining significant long-term gains. Importantly, this national decline has been disproportionately influenced by Ontario and BC, two of the country’s most expensive real estate markets. Once those outliers are accounted for, Canadian Real Estate Price Trends 2025 paint a much more nuanced picture—one of growth rather than a widespread correction.
Ontario led the decline with a 24% drop from its 2022 high, bringing the typical home price to $794,100 in June. This single province’s downturn dragged the national average more than any other. BC followed with a 10.2% decline from peak levels, lowering its average home price to $945,800. While still high, this drop reinforces that cooling in major markets is skewing national figures.
In contrast, most provinces are experiencing stable or even rising property values. New Brunswick and Alberta saw marginal price reductions of just 2.5% and 1.2% respectively—changes small enough to be considered statistical noise. Meanwhile, home prices in PEI, Newfoundland, Nova Scotia, Saskatchewan, and Quebec have all reached new record highs. PEI led the monthly gains with a 1.6% increase, followed by Newfoundland at 1.4%.
Even Manitoba, not included in CREA’s HPI but represented through Winnipeg, recorded a local benchmark high, suggesting the province may be experiencing stable or rising prices. These provincial surges illustrate that Canadian Real Estate Price Trends 2025 vary dramatically by region.
What’s also emerging is a possible “bubble contagion.” As affordability in major centres like Toronto and Vancouver becomes increasingly elusive, buyers are looking to smaller or more affordable regions. The mindset is: “It’s up 40%, but still cheaper than Toronto.” This migration is creating imbalances in regional markets, with home prices rising rapidly in places that previously offered value.
The concern now is whether these tethered markets will follow the anchor markets down if broader corrections take hold. If the demand was driven more by fleeing unaffordability than by economic fundamentals, the risk of a delayed correction looms.
In conclusion, Canadian Real Estate Price Trends 2025 show a country with two distinct stories: sharp declines in high-priced markets, and new highs in the rest. The national correction is more illusion than reality—unless Ontario and BC’s downturns begin to ripple outward.
