The current average home price in Canada is $668,097.
Canadians face ongoing affordability challenges in 2025, with rising property prices and stagnant wages. Yet 2025 may be a better time to buy than 2024, due to increased supply and better interest rates. The bubble hasn’t burst yet!
We break down the average home prices by province and by home type, and we offer expert insights into the future with tips to navigate Canada’s fluctuating housing market.
Key Takeaways
- The average Canadian house price is $668,097.
- Single-family homes are more expensive than the average, condos, and townhouses.
- The cheapest province to buy a house is Newfoundland and Labrador.
- Tariff threats from the U.S. mean that 2025 may not be a good time to buy a new home.
Average home price in Canada
The current national average home price in Canada: $668,097.
Canada is still considered a seller’s market in most provinces.
Here’s a look at the last 10 years of average home prices in Canada:
- 2024: $723,100
- 2023: $731,000
- 2022: $725,000
- 2021: $758,000
- 2020: $595,000
- 2019: $533,000
- 2018: $535,000
- 2017: $549,000
- 2016: $518,000
- 2015: $446,000
Prediction for 2025 housing prices in Canada
The Canada Mortgage and Housing Corporation is predicting that the average home price in 2025 will reach $722,221.
Here are percentage predictions from other sources for 2025 housing prices in Canada:
- Up 4.7% (CREA)
- Up 5% (ReMax Canada)
- Up 6% (Royal LePage)
- Up 8% (TD)
Beyond this year, experts are unsure if the affordability and supply of housing will improve.
In 2026, $746,379 is the CMHC’s tentative prediction for the average house price in Canada.
More condos are set to become available from 2025 to 2030, but policy experts say that over 3 million new houses must be built to restore affordability in the Canadian market by 2030. There will continue to be strong competition, especially in dense urban areas, due to stabilized interest rates and new federal policies.
The cheapest place to buy a house in Canada is Newfoundland and Labrador
Newfoundland and Labrador: $309,844
Newfoundland and Labrador is currently the cheapest place to buy a house in Canada. The average home price is $309,844, a 0.1% decrease over this time last year.
The second cheapest province is New Brunswick, with a benchmark price of $318,80. This is a 10.6% increase over the price at this time last year.
Average home price in Canada by province
The average home price in Canada varies by province, as well as by location within that province.
- $964,349 = February 2025 average home price in British Columbia (most expensive)
- $309,844 = February 2025 average home price in Newfoundland and Labrador (least expensive)
Here’s a look at prices by province in early 2025, as well as the average price of a home in a major city in that area:
| Province or territory | Average home price in 2025 | Average price in major cities |
|---|---|---|
| Alberta | $509,468 | $612,838 (Calgary) |
| British Columbia | $964,349 | $1,224,858 (Vancouver) |
| Manitoba | $382,440 | $394,088 (Winnipeg) |
| Newfoundland and Labrador | $309,844 | $430,065 (St. John’s) |
| New Brunswick | $318,800 | $364,295 (Moncton) |
| Northwest Territories | $422,787 | $510,766 (Yellowknife) |
| Nova Scotia | $451,969 | $590,786 (Halifax) |
| Nunavut | $550,000 | No available data |
| Ontario | $848,289 | $1,084,547 (Toronto) |
| Prince Edward Island | $373,993 | $373,993 (Charlottetown) |
| Quebec | $515,899 | $618,798 (Montreal) |
| Saskatchewan | $345,688 | $429,493 (Saskatoon) |
| Yukon | $661,400 | $579,000 (Whitehorse) |
Average home price in Canada by type of home
Condos are the cheapest and single-family homes are the most expensive, at the moment.
Here are the national averages in Canada by type of home:
- Home: $709,200
- Single-family: $786,200
- Townhouse: $648,900
- Condo: $507,400
Overview of Canada’s 2025 housing market: The Canada housing bubble
The bubble has not burst yet. In 2025, it looks like Canada will remain a seller’s market, though home-buying activity is slowing down slightly.
Prices remain steady, new listings are down
Home prices are now predicted to go down by a slight 0.3%, reaching $687,898 in 2025. British Columbia and Ontario will likely see prices decline, but other provinces will see increases of 3% to 5%.
New listings are also decreasing slightly, down 0.2% from February 2024 to 2025. From January to February 2025, new listings were down 12.7%. Overall, the sales-to-new-listings ratio (SNLR) was 50% for the month of February.
The bottom line is, Canada is still in a high-demand, low-supply market.
Demand is high, but the population of Canada is projected to decline in 2025 and 2026 due to limits on immigration, before restarting with slow growth in 2027 once supply stabilizes.
Supply is low, but it’s complicated. Home buyers remain nervous, and developers are hesitant to break ground on new builds with the threat of U.S.-imposed steel and aluminum tariffs.
Ultimately, CMHC predicts that sales activity in 2025 will surpass the 10-year average, but not exceed the 2020-2021 peak due to the extremely high cost of property.
Mortgage rates are stabilizing, but the future is unclear
In 2025, the cost of borrowing is lower thanks to the multiple prime rate cuts (which affect mortgage rates) from the Bank of Canada in 2024.
Experts were predicting that mortgage rates would decrease and the number of home sales would increase in 2025 and 2026. However, the threat of a trade war with the U.S. creates a significant complication, making predictions very difficult.
Because of this, mortgage rates have remained stable for a while, but they’re still a lot higher than they were back in 2020-2021, when the overnight rate was 0.25%.
The BoC overnight rate remains at 2.75%. It's hard to say whether this rate will change as we progress into 2025.
Is it better to rent or buy in Canada?
2025 is as good a time as any to buy property in Canada, if your finances are in order. Property prices are and will continue to be high, and it’s unlikely they’ll get much cheaper.
Look out for the cost of borrowing to decrease slightly over the next 12 months, which could save you money in the long run. But don’t wait too long, as it’s still a competitive market with limited supply and unpredictable property prices.
Rent prices are predicted to increase in 2025, too.
What caused the housing situation in Canada?
Canada's challenging housing market is due to decades of compounding economic, demographic, and real estate trends:
Lack of affordability: Home prices have risen faster than income over the last 40 years. This makes it harder for everyday buyers to save for down payments and qualify for mortgages. Limited disposable income and rising household debt are factors, too.
Low supply: Because population growth has exceeded home-building activity, there’s a persistent housing shortage in Canada. Bureaucracy and construction labor shortages contribute to supply issues as well.
Financing guidelines: Tight mortgage rules have further strained buyers' ability to afford homes. The stress test is preventing Canadians from getting on the property ladder, even if they want to.
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$25 GeniusCash + Delicious meal choices with fresh ingredients + Front-door delivery.Purchasing your first house in Canada
Here is an overview of the steps involved in purchasing a house in Canada:
- Get mortgage pre-approval: Know your borrowing limit. Shop around for mortgages.
- Search for a home: Compare properties and prices. Work with an agent.
- Make an offer: Negotiate and sign a purchase agreement, with legal support.
- Secure financing: Finalize your mortgage with the lender. Rates can fluctuate.
- Pay your down payment: 20% is ideal, but it depends on your situation.
- Complete the closing: Handle legal and financial paperwork to take ownership.
- Move in: Plan your move, including utility setup and starting insurance.
Preparing to buy a house at some point in the future? Start here:
- Open an FHSA (First Home Savings Account): Tax-free savings for your first home. You can also withdraw some money from your RRSP to help fund a home purchase.
- Understand new rules: Smaller down payments are now eligible for higher-priced homes, and 30-year amortizations are available for first-time buyers.
- Improve credit score: Boost your chances for better mortgage rates.
- Set a realistic budget: Account for increased home costs and lifestyle changes.
Remember, you will also have to budget for costs beyond the property price:
- CMHC mortgage insurance: Required for down payments under 20% (protects the lenders).
- Closing costs: Legal fees, title insurance, appraisals (between 1.5-4% of purchase price).
- Land transfer tax: Varies by province, and rebates may be available for first-time buyers.
- Property tax rates: Annual municipal taxes based on home value.
- Moving fees: Payments for truck rentals or professional movers, as needed.
- Home insurance: Mandatory for most mortgage lenders.
After you purchase the home, you can start looking ahead at mortgage renewal rates, refinancing, HELOCs, and other options available to you as a new homeowner in Canada.
FAQ
What is the average home price in Toronto, Canada?
The average home price in Toronto in early 2025 is approximately $1,084,547, a slight decrease from this time last year. The average for a single-family home is $1,439,268, and it’s $1,001,043 for a townhouse.
What are the housing prices in Canada compared to the US?
Home prices are 19% higher in Canada than in the U.S. The median home value in America is $346,000 vs. $487,540 here. At the time of writing, the conversion rate is CAD $1 to USD $0.72.
Will 2025 be a good year to buy a house in Canada?
The potential of a trade war with the U.S. is causing uncertainty in the financial sector, so 2025 might not be the best time to buy a house. It's very difficult to predict how the housing market will perform.
Are home prices dropping in Canada?
In some parts of Canada, home prices are dropping by several percent. This is true especially in cities like Toronto and Vancouver. These numbers change seasonally, so keep an eye on the statistics in your area.
Where is the cheapest place to live in Canada?
Looking at the cost of living and housing costs, Sault Ste. Marie is the best place to live. On housing prices alone, the cheapest place to live is Newfoundland and Labrador, where the average home price is $309,844
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