According to the latest Royal LePage House Price Survey and Market Forecast, the aggregate price of a home in Canada eased upwards modestly in the second quarter of 2025, increasing 0.3 per cent year-over-year to $826,400. On a quarter-over-quarter basis, the national aggregate home price decreased by 0.4 per cent.

The start of the spring market – typically one of the busiest times of year for homebuying and selling – was subdued in several regions this year, namely in Toronto and Vancouver, two of the country’s largest and most expensive markets. Amid global political and economic uncertainty, many homebuyers continued to take a cautious, wait-and-see approach. The Bank of Canada also held back, maintaining its overnight lending rate at 2.75 per cent during its scheduled April and June announcements, citing the need to “gain more information about both the path forward for U.S. tariffs and their impacts.” Sellers, on the other hand, continue to actively list their homes for sale despite lower than normal activity.

Sound fundamentals

“Homebuyers approached the start of the 2025 spring market with hesitation, dampening what is typically the busiest season on the real estate calendar,” says Phil Soper, president and CEO of Royal LePage. “With trade disputes, a federal election and international conflicts dominating headlines through the first half of the year, many prospective buyers chose to wait. Yet, market fundamentals remain sound; interest is strong while activity is subdued, reflecting the uncertainty weighing on consumer sentiment. Encouragingly, June’s robust employment report may help rebuild confidence and bring more buyers off the sidelines in the months ahead.”

According to a recent Royal LePage survey, conducted by Burson, 28 per cent of Canadians who currently rent say that, before signing or renewing their current lease, they considered buying a property rather than renting. When asked what factors influenced their decision to rent instead, 40 per cent of respondents said they are choosing to wait for property prices to decline; 29 per cent are choosing to wait for interest rates to decrease further; and 28 per cent say they are working towards buying a property, and continuing to rent allows them to save for a sufficient down payment.

The Royal LePage National House Price Composite is compiled from proprietary property data nationally and regionally in 64 of the nation’s largest real estate markets. When broken out by housing type, the national median price of a single-family detached home increased 1.1 per cent year-over-year to $870,200, while the median price of a condominium decreased 0.8 per cent to $592,000. On a quarter-over-quarter basis, home prices continued flat, with the median price of a single-family detached home increasing just 0.2 per cent, and the median price of a condominium decreasing a modest 1.0 per cent.

Foundation for stronger market

“With borrowing costs stable and inventory levels continuing to build, the foundation is in place for a stronger market this fall – and signs of renewed confidence are beginning to emerge,” says Soper. “After a market slowdown, there’s always the risk that a sudden surge in demand could reignite uncomfortable levels of house price inflation. But, unlike previous cycles, inventory is higher than recent norms, which should help absorb returning demand and keep price appreciation in check. This makes for a healthier, more balanced recovery as buyers come back into the market.”

Royal LePage is forecasting that the aggregate price of a home in Canada will increase 3.5 per cent in the fourth quarter of 2025, compared to the same quarter last year. The previous forecast has been revised down modestly to reflect slower-than-usual sales activity in Ontario and British Columbia. Nationally, home prices are forecast to see modest appreciation throughout the remainder of the year, with sharper gains expected in the fall.

Greater Toronto Area highlights

The aggregate price of a home in the GTA decreased 3.0 per cent year-over-year to $1.15 million in the second quarter of 2025. On a quarterly basis, the aggregate price of a home remained relatively flat, increasing 0.8 per cent.

Broken out by housing type, the median price of a single-family detached home decreased 1.2 per cent year-over-year to $1.44 million in the second quarter of 2025, while the median price of a condominium decreased 5.6 per cent to $699,700.

In the city of Toronto, the aggregate price of a home decreased 5.2 per cent year-over-year to $1.15 million in the second quarter of 2025, while the median price of a single-family detached home decreased 4.7 per cent year-over-year to $1.67 million, and condominiums decreased 5.0 per cent to $675,800.

Royal LePage is forecasting that the aggregate price of a home in the GTA will increase 2.0 per cent in the fourth quarter of 2025, compared to the same quarter last year.