Canadian Real Estate Prices Slip Sharply, Further Downward Pressure Builds

Canadian home prices continued their descent in April, according to the latest data from the Canadian Real Estate Association. The national benchmark price dropped by 0.7%, falling $4,800 to settle at $701,900. That brings the year-over-year decline to 3.6%, or about $26,100—levels not seen since 2021.

This marks the fourth straight month of negative annual growth, making April’s drop the steepest yearly contraction since September 2024. Prices have stayed within a tight range recently, and the trend suggests that home values are now hovering around where they were in 2021.

Looking more closely, market data shows a “triple top” pattern, where home prices tried to rise three times since 2022 but failed each time. Each bounce was weaker than the last, showing that buyers are now more cautious and unwilling to pay higher prices.

Since hitting an all-time high in March 2022, benchmark home values across Canada have fallen by 17.6%, or about $149,700. Even though some lenders report small gains in certain areas, the overall numbers point to a steady decline in home values.

Affordability remains a serious issue. Even with lower borrowing costs and easier credit conditions, many buyers are still holding back. Cities like Toronto and Vancouver, once known for strong housing demand, are seeing people leave for more affordable areas.

The drop didn’t stop in April. In May, benchmark prices slipped again—down another 0.2%, or $1,500, to $690,900. That’s the sixth monthly decline in a row and puts prices back to where they were in May 2021. Without major changes to affordability or interest rates, the pressure pushing home prices down is likely to continue.