Canadian Real Estate Prices Fall To Lowest Level In 4 Years

Canadian home values dropped again in May, falling 0.2 per cent nationwide. That meant a typical home cost about C$690,900—its lowest level since May 2021, exactly four years ago. This ongoing slide marks the sixth straight monthly fall for the national price benchmark.

Compared with a year earlier, benchmark prices are down 3.2 per cent: a loss of about C$23,100. That makes it the fourth straight month where year-over-year declines have deepened. Since the market peak in February 2022, prices have dropped 17.5 per cent—nearly C$146,500 in lost value.

The markets feel soft because of weak home sales and more homes available for sale. More people are listing their properties, and fewer buyers are stepping in. Economic nerves—especially worries over job security and broader trade tensions—are keeping many would-be buyers on the sidelines.

Condo apartments are seeing even bigger losses than single-family homes. In May the typical condo price fell 0.4 per cent to C$492,500, marking the 19th straight month of decline. Condo prices are now at their lowest since mid-2021—about four years back.

Housing analysts warn this isn’t a flash crash—it’s a slow unwind. The drop began when borrowing costs rose sharply, and despite recent interest rate cuts, the bounce-back has been uneven. Markets in Ontario and British Columbia remain especially weak, while some smaller provinces are holding relatively steady.

Still, experts expect the downturn will not last forever. Forecasts suggest home prices could drop another 2 per cent in 2025 and then hold steady or modestly recover in 2026—especially if trade uncertainty eases and the Bank of Canada continues cutting rates. But for now, prices remain at a four-year low, giving buyers more room to negotiate.