Published: June 16th, 2025 • Last Updated: June 16th, 2025
Author: Ross Taylor on AskRoss.ca

What’s Happening In Canada’s Housing Market This Summer? A City-By-City Update For 2025

If you’re watching the real estate headlines and wondering whether it’s finally your time to buy—or whether you should wait it out—you’re not alone. From coast to coast, the Canadian housing market is undergoing a massive reset.

And no, it’s not just Toronto that’s cooling down.

We’re seeing a rare convergence of economic uncertainty, high inventory, and shifting buyer sentiment, all coming together to push many cities across Canada into buyer’s market territory.

But this isn’t a one-size-fits-all story. From Vancouver’s deep buyer’s market to Montreal’s surprising strength, here’s a breakdown of what’s really going on across the country right now, and what it means for you.

Jump to a specific section in this article ↓↓

• What’s really happening in Ontario’s housing market?
• Vancouver is deep in buyer’s market territory
• Calgary is slowly shifting to balance
• Montreal is in a rare seller’s market in 2025
• The Ottawa government’s stability supports a balanced market
• What about the rest of Western Canada?
• What’s driving the national housing market reset?
• The bottom line: know your local market

What’s really happening in Ontario’s housing market?

Let’s start in my own backyard: the Greater Toronto Area. It’s ground zero for Canada’s current housing rebalancing, and the numbers tell a pretty clear story.

GTA buyers are calling the shots

As of May 2025, the GTA had a staggering 30,964 active listings—the highest level of inventory since 2002. That’s not a typo. We haven’t seen this much supply on the market in 23 years.

Combine that with a sales-to-new-listings ratio (SNLR) of just 29%, and you’ve got a textbook buyer’s market.

In plain terms, there are way more homes for sale than there are buyers ready to act.

Here’s what we’re seeing across the GTA (as of May 2025)

• 68% of all homes in the GTA sold below asking price.
• Condos are hit the hardest, with 78% of sales closing under the listing price.
• In the Halton Region, the vast majority sold below the listing price.

There’s just no urgency for buyers right now. They’ve got options, they’ve got negotiating power, and they know it.

Meanwhile, even well-presented properties are sitting on the market longer, and sellers are facing longer timelines and increased pressure to price their homes realistically.

How are other Canadian markets comparing?

This isn’t just an Ontario story. The reset is happening across the country, but each city is feeling it in its own way.

↑↑ Back to the list at the top ↑↑

Vancouver is deep in buyer’s market territory

Vancouver’s market has cooled dramatically. May 2025 saw the weakest sales volume in a decade, down 18.5% year-over-year, and 30.5% below the 10-year seasonal average.

Inventory is soaring, with 17,094 active listings, and the sales-to-new-listings ratio stands at 34%. That’s about as close to a full-stop buyer’s market as it gets.

Benchmark prices are slipping:

• Detached homes: down 3.2%
• Condos: down 2.4%
• Overall market: down 2.9%

Buyers in Vancouver have a rare level of choice and negotiating leverage, but they’re also sitting on their hands, largely due to trade uncertainty and interest rate fatigue.

↑↑ Back to the list at the top ↑↑

Calgary is slowly shifting to balance

Calgary isn’t in buyer’s market territory yet, but the wind is changing. Sales dropped 17% in May, while inventory nearly doubled.

• Benchmark prices dropped 2.5%: the first annual decline since 2020
• Average prices rose 6%: thanks to more high-end sales.
• The sales-to-new-listings ratio sits at 53%, placing it in balanced territory.

Luxury inventory is piling up, especially in the $700K+ segment, and sellers are adjusting expectations.

The broader economy, particularly oil prices and employment, will determine whether Calgary fully transitions into a buyer’s market territory later this year.

↑↑ Back to the list at the top ↑↑

Montreal is in a rare seller’s market in 2025

Montreal is the big outlier in 2025. It’s one of the only major cities still favouring sellers.

Sales in May rose 4% year-over-year, and the SNLR sits at a healthy 66%. Prices are climbing:

• Average resale price: up 8.2% to $574,900
• Single-family homes: up 9.2% to $680,200
• Condos: up 5.4% to $427,000

Montreal’s success is driven by relative affordability, strong francophone immigration, and tight inventory.

But even here, realistic pricing and good presentation still matter, especially with new construction supply ramping up in some neighbourhoods.

↑↑ Back to the list at the top ↑↑

The Ottawa government’s stability supports a balanced market

Ottawa is flying under the radar but deserves some attention. Thanks to the federal employment base, Ottawa is weathering economic uncertainty better than most.

Buyers have options, and sellers can still get strong prices, as long as they’re realistic.

The SNLR is 52.7%, marking a balanced market. Inventory rose 54.2%, but strong government employment is keeping buyer demand healthy and prices steady.

• May sales: up 3.4% year-over-year
• Average price: climbed 4.5% to $721,656
• The sales-to-new-listings ratio of 50% points to a balanced market
• Inventory up 54.2%, improving buyer choice

In a province full of uncertainty, Ottawa remains one of Canada’s most stable real estate markets.

↑↑ Back to the list at the top ↑↑

What about the rest of Western Canada?

Western Canada is a mixed bag right now, and local factors are playing a bigger role than ever.

Edmonton: high prices, softening sales

Edmonton hit a new high for benchmark detached home prices—$518,500—but that strength in pricing is masking a drop in sales and a jump in listings.

Edmonton’s sales-to-new-listings ratio (SNLR) in May 2025 is 54%.

It’s becoming tougher for sellers to hold firm, and buyers have more room to negotiate.

Winnipeg: surprisingly strong

Winnipeg is defying the trend. It posted an 8% increase in sales, and its SNLR is a solid 69%, making it the strongest seller’s market in the country at the moment.

It’s one of the few places where sellers still have the upper hand, at least for now.

↑↑ Back to the list at the top ↑↑

What’s driving the national housing market reset?

Despite the Bank of Canada cutting rates seven times in a row, we’re not seeing a flood of buyer activity. Why?

Because interest rates aren’t the only issue. Buyers are still wary, and two big question marks are keeping them cautious:

1. Uncertainty around U.S. trade policies and tariff threats
   
2. Immigration policy changes that could reduce housing demand by up to 670,000 units through 2027
   

Nationally, the sales-to-new-listings ratio is 47%, and average home prices have dropped 3.9% year-over-year. Inventory is at levels we haven’t seen since the mid-2010s.

Put bluntly: buyers have regained control in most cities.

↑↑ Back to the list at the top ↑↑

The bottom line: know your local market

We’re in one of the most unpredictable housing cycles in recent memory. In some cities, prices are falling, listings are rising, and buyers are sitting tight.

In other regions, such as Montreal and Winnipeg, demand is still hot.

This is no longer a one-size-fits-all market; one thing is for sure: local conditions matter more than ever.

If you’re in Toronto or Vancouver, it’s probably the best time in years to buy—with more choice, more negotiating power, and time to think. And if you’re selling, pricing, and presentation have never been more important.

As always, if you’re not sure what move makes sense in your particular market, feel free to reach out. My team and I are here to help you make sense of it all.

↑↑ Back to the list at the top ↑↑

---