Fall housing market moving towards a ‘balance.’ What does it mean for you?

October 15, 2025

Fall housing market moving towards a ‘balance.’ What does it mean for you?

With tariffs hanging over Canada’s economy, the housing market got off to a “slower-than-expected” start in the spring but may recover in the fall, a new report by Royal LePage released on Wednesday said.

The report said the housing market could find “balance” in the fall, which means Canada’s falling home prices could plateau by year’s end.

“Canada’s housing market is shifting toward balance, as easing prices, rising listings and renewed rate cuts improve affordability across most regions,” Royal LePage CEO Phil Soper said in a statement.

“For the first time in years, buyers – especially in previously supply-strapped markets – have real choice and negotiating power. With confidence returning and further rate reductions expected into early 2026, we anticipate noticeably stronger activity by the spring.”

Nationally, the average home price in Canada is expected to be $827,796 by the end of the year, a modest increase of one per cent compared with $819,600 at the same time last year.

Some of the country’s most expensive markets, like Toronto and Vancouver, will see prices decline compared with the end of 2025. In the Greater Toronto Area, the average home is expected to cost around $1.11 million, a drop of three per cent compared with last year, the Royal LePage report said.

Meanwhile, Greater Vancouver will see the average home price around $1.2 million by the end of the year, a two per cent decrease compared with last year.

Quebec City is set for the biggest increase in home prices with a 15 per cent spike, but with the average home costing $460,690 in the city, it is well below the national average, the report added.