Canadian home prices set to stabilize in 2025, forecast reveals

After years of market turbulence, Canadian home prices are projected to return to historical norms in 2025, according to Royal LePage’s latest Market Survey Forecast. The national aggregate home price is expected to rise 6.0% year-over-year, reaching $856,692 in Q4 2025. Single-family detached homes and condominiums are forecast to see 7.0% and 3.5% increases, respectively.

“After several years of unusual volatility in the real estate market, key indicators point to a return to stability in 2025,” said Phil Soper, Royal LePage’s CEO, emphasizing declining interest rates and expanded mortgage rules could enhance borrowing capacity and encourage market activity.

Effective December 15, 2024, changes include extending insured mortgage amortizations to 30 years for first-time buyers and raising the mortgage insurance cap to $1.5 million.

Meanwhile, policy shifts and upcoming elections may influence market conditions.