Canadian Average Home Price Slides to Four-Year Low; CREA Reduces 2025 and 2026 Forecasts

News| July 21, 2025| Monte Stewart

Canadian home prices continued their slide in June, falling to the lowest level since April 2021, Better Dwelling reported.

The report cited figures from the Canadian Real Estate Association (CREA), which showed that the composite benchmark price dropped 0.2% month-over-month to $698,600—down 3.6%, or $25,600, from the same time in 2024.

Better Dwelling reported that, based on the CREA data, home prices have now declined for seven consecutive months, with the pace of losses accelerating. Since peaking in February 2022, the typical home price has fallen 17.8%, or nearly $149,000. Despite that, prices remain 26.7% higher than they were at the end of 2019.

The latest figures point to a shift in momentum after a period of stagnation, indicating further potential downside for the market. CREA’s updated methodology, which places greater weight on condominium apartments, also contributes to recent comparisons showing today’s homes are generally smaller or in less desirable locations than before the pandemic, according to Better Dwelling.

Meanwhile, CREA has updated its 2025 and 2026 housing-sale and average home-price forecasts.

CREA now expects 2025 home sales and prices to decline slightly from 2024, revising its April 2025 forecast further downward, the national realtor group said in a news release. In January, CREA forecast that 2025 would be a recovery year.

CREA said “the tariff chaos and uncertainty that drove so many buyers back to the sidelines earlier this year ended up taking a larger bite out of activity in British Columbia, Alberta, and Ontario than was expected three months ago.”

But the latest anticipated drop is not as sharp as the CREA forecast revision between January and April.

A total of 469,503 residential properties are now forecast to change hands via the Canadian MLS system in 2025.

CREA expects the average 2025 home price to dip 1.7% year-over-year to $677,368, about $10,000 lower than the group anticipated in its April forecast.

“Only British Columbia and Ontario are forecast to see declines in average home prices this year, but the combination of those declines, along with fewer sales in those expensive provinces was enough to offset price gains in the range of 4% to 8% in all other provinces in 2025,” said CREA.

CREA expects national home sales to rebound 6.3% to 499,081 in 2026, getting back on track with the April 2025 forecast. That revised 2026 level would still mark the fourth straight year in which home sales fail to crack the 500,000 threshold.

The national average home-sale price is forecast to increase 3% in 2026 to $697,92 from 2025. But that would mark the sixth consecutive year of the average staying around the $700,000 level.

“That said, it’s important to reiterate that all forecasts are still subject to very high levels of uncertainty, though maybe less now than in the first half of the year,” said CREA.

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