Canadian Real Estate Price Floor Breaks, Prices Plunge To 4-Year Low

Canadian housing prices dropped further in June 2025, with the composite benchmark Home Price Index falling to $698,600—a 0.2 percent decline from the previous month and a 3.6 percent drop year-over-year, or roughly $25,600 lower—a level not seen since April 2021. This renewed slide suggests that talk of a market stabilization may have been premature, and the market may now be entering a sharper downturn.

The recent price declines in Canadian real estate are gaining momentum. June’s monthly drop was larger than May’s, and the 12-month change has reflected losses for seven months in a row, now moving at the fastest pace since September 2024. This persistent weakening points to a growing shift in trends, rather than a temporary wobble.

Although prices are retreating, they remain significantly higher than levels seen before 2020. Since the February 2022 record high, home prices have eased by 17.8 percent, roughly $148,800. Nevertheless, they are still about 26.7 percent above the end-of-2019 levels—an increase of about $145,000. In addition, methodological changes in how the benchmark is calculated—such as giving more weight to condominium apartments—mean the typical home captured in today’s index may not match the same type of home from years ago.

Canada’s housing market now confronts strains beyond price alone. In June, the nationwide sales-to-new-listings ratio dropped to 49.3 percent—the lowest June reading since 1995, during the country’s biggest real estate crash. This marks a four-month slide in this ratio and reflects supply growing 32 percent faster than demand—an erosion not seen since the late 1980s downturn.

Despite the falling national trend, the picture varies by region. The slowdown is largely driven by drops in Ontario and British Columbia. Ontario’s typical home price has plunged 24 percent from its record, landing at $794,100, while BC saw a 10.2 percent decline to about $945,800. Meanwhile, many other provinces—like Prince Edward Island, Newfoundland, Nova Scotia, Saskatchewan, and Quebec—have hit new record-high prices, suggesting buyers are shifting toward more affordable regions.

Overall, Canada’s real estate landscape is showing a turning point: national prices are snapping back to levels last seen four years ago, particularly in the high-cost markets. But outside those regions, smaller and more affordable provinces continue to see home prices climb. The result is a nation at a crossroads, where affordability pressures and shifting demand are redrawing the housing map.