Q2 2025 Market Story
“The market didn’t roar this spring. It hesitated. But that’s not the whole story.”
by Luba Beley, Real Estate Broker

This past spring felt different. Normally, April through June is when the real estate market lights up—open houses every weekend, bidding wars at every turn. But this year, the energy stalled. Uncertainty in the economy, a new government in Ottawa, and buyers waiting for signals—they all played a role. Still, underneath the stillness, things are moving. The foundation is being rebuilt.

Across Canada: Hesitation, Inventory, and Quiet Optimism

Let’s start with the big picture.

Nationally, home prices barely budged. The average price rose just 0.3% year over year and actually slipped 0.4% compared to Q1. Not dramatic—but telling. What we saw this spring wasn’t a crash. It was a pause. And for many Canadians, especially renters or first-time buyers, this pause is actually creating a window.

Some quick takeaways:

  • Montreal held strong, with prices up 3.5% year over year.

  • Toronto and Vancouver dipped, down 3.0% and 2.6% respectively.

  • Quebec City soared, leading the country again with a 13.5% increase.

  • Inventory is up, giving buyers more options and softening price pressure.

  • Wages are rising, and home prices have cooled since their 2022 peak.

One of the most encouraging stats? Weekly wages have gone up nearly 12% since 2022, while home prices are 3.6% below their all-time highs. It’s not enough to declare housing “affordable” again—but we’re inching in the right direction.

And with the Bank of Canada holding rates steady at 2.75%, borrowing costs are stable. If inflation continues to cool, we may see another rate cut before year-end—which would further boost buyer confidence.


In the GTA: Subdued, But Not Sleeping

Closer to home, the GTA market echoed the national tone—quieter than usual, but not asleep.

  • The average home price in the GTA dropped 3.0% year over year, landing at $1,155,300.

  • Detached homes held up relatively well, down just 1.2%.

  • But condos took a bigger hit, with prices down 5.6% across the region.

  • In the City of Toronto, prices dipped even further—down 5.2% overall.

What’s behind the softness? A few things:

  1. Cautious buyers. Many are watching headlines, waiting for a green light.

  2. More listings. Sellers are active, but buyers are taking their time.

  3. Condo saturation. A flood of new builds has pushed down condo values, especially smaller units.

  4. Investor retreat. With fewer international students and newcomers, rental demand has cooled—and investors are pulling back.

Still, there are bright spots. Larger condos—especially those with 2+ bedrooms and good layouts—are drawing attention. First-time buyers see them as an affordable entry point, especially compared to detached homes.

And even though many buyers are holding back, showing requests surged in late Q2. That’s a key signal. The energy is shifting. We may not be in full swing yet—but the market is warming back up.

Where We’re Headed

Royal LePage forecasts that home prices across Canada will rise 3.5% by the end of 2025, and 2.0% in the GTA. Modest growth—not a boom, not a bust.

If confidence returns—and if Canadians feel more secure about jobs, the economy, and interest rates—we could see a more active fall. But we’re not there yet. This market is steady, cautious, and full of opportunity if you know where to look.

Whether you’re buying, selling, investing, or just keeping an eye on the horizon—I’m here to help you move with clarity and confidence.

PLEASE REED THE FULL REPORT IN THE LINK BELOW:

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