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Canadian home sales fell 1.9% in 2025 to 470,314 units, influenced by an early-year slowdown from U.S. tariffs, with December sales and prices also declining. CREA highlighted uneven slowdowns across major cities and advised against extrapolating December trends into the new year. Sales are expected to rebound as spring approaches, supported by lower interest rates and ongoing demand. CREA forecasts a 5.1% increase in sales and a 2.8% rise in average prices this year, led by British Columbia and Ontario, with continued growth projected into 2027.
Canadian home sales recorded a decline last year, with both sales and prices falling in December, according to data from the Canadian Real Estate Association (CREA). Home sales dropped 2.7% in December compared to November and were down 4.5% year-over-year without seasonal adjustments. For the full year, sales fell 1.9% to 470,314 units. CREA attributed part of the slowdown to the economic impact of U.S. tariffs, which discouraged buyers during the first quarter. Advertisement
CREA senior economist Shaun Cathcart noted that the December decline did not follow a clear pattern, pointing to coinciding but unrelated slowdowns in Vancouver, Calgary, Edmonton, and Montreal. He advised caution in projecting December trends into the new year, emphasizing that sales are expected to rise as the spring season approaches, continuing the upward momentum observed during spring, summer, and early fall last year.
The industry group forecasts a 5.1% rise in sales this year, led by British Columbia and Ontario, with the average home price expected to increase 2.8% to C$698,881 (USD 502,539). For 2027, CREA predicts further growth, with sales climbing 3.5% and the average price rising 2.3%.
The Bank of Canada has lowered its benchmark interest rate to 2.25% to support economic activity, marking a cumulative reduction of 2.75 percentage points since mid-2024. CREA's Home Price Index showed a monthly decline of 0.3% and a 4% drop year-over-year. Newly listed properties fell 2% month-over-month, marking a fourth consecutive monthly decrease, while the sales-to-new listings ratio eased slightly to 52.3%, remaining close to the long-term average.
Source Reuters
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