Canadian real estate in 2025 is showing stark regional divides, with affordability challenges, economic uncertainty, and shifting buyer priorities creating a patchwork of market conditions. While the Greater Toronto Area (GTA) and Metro Vancouver dominate national headlines, they are also leading the downturn. GTA condo prices have fallen back to 2022 levels, with downtown Toronto units at their lowest since 2018, and detached homes in Hamilton down 24%. In B.C., Burnaby and Victoria have seen prices drop 12% and 13% respectively, while townhouse values in Chilliwack have stalled after years of steady growth.

Not all markets are experiencing declines. In Atlantic Canada, Fredericton and Saint John have recorded double-digit price gains. Similarly, Alberta, Saskatchewan, and Manitoba continue to see upward momentum, led by cities such as Red Deer and Brandon, where prices have surged 10% to 30% year over year. Kitimat, B.C., a new entry in the Century 21 Canada Price per Square Foot survey, now holds the title of Canada’s most affordable market, with townhouses averaging $168 per square foot.

According to Century 21 Canada executive vice president Todd Shyiak, the first half of 2025 has brought “huge variations in pricing trends” as communities react differently to market headlines and the uncertainty brought by ongoing tariff issues. While the GTA faces its toughest conditions in years, Alberta, Saskatchewan, Manitoba, and Atlantic Canada are benefitting from buyers seeking livable, lower-cost communities—a continuation of a migration trend that began during the pandemic.

Even in more stable markets such as Montreal, with a 5–8% price rise, or Ottawa, where detached homes jumped 22%, buyer sentiment remains cautious. Elevated interest rates and tariffs have slowed activity, with many buyers and sellers adopting a “wait and see” stance. Although there were early signs of increased activity in June, experts expect this cautious approach to persist through the rest of 2025.