Home Price growth: The Canadian housing market has been on a rollercoaster ride in recent years, marked by periods of rapid price growth and unpredictability. However, according to Royal LePage’s 2025 Market Survey Forecast, home prices are set to return to a more stable, long-term growth pattern in 2025. This shift signals a more predictable and balanced market for homebuyers and investors.
Here’s a breakdown of what to expect in the coming year, with insights into regional trends and the factors driving these changes.
National Outlook: HOme Price Growth Returns to Normalcy
Royal LePage forecasts that the aggregate price of a home in Canada will increase by 6.0% year-over-year by the fourth quarter of 2025. This growth aligns with historical norms, offering a sense of stability after years of market volatility.
The graph from Royal LePage’s forecast shows a steady upward trend in home prices throughout 2025, reflecting the end of what many experts have called an “era of unpredictability.” This stability will likely benefit buyers, sellers, and investors alike, as they can plan their real estate transactions with more confidence.
For more on national trends, visit Royal LePage’s Housing Market Forecast.
Regional Highlights: Where Home Price Growth is Strongest
Greater Montreal Area (GMA): A Leader in Growth
The Greater Montreal Area is expected to see the highest growth among major Canadian regions, with prices forecasted to rise by 6.5% year-over-year. Montreal’s strong economy, coupled with ongoing urban development, continues to drive demand for residential properties.
Greater Toronto Area (GTA): Steady but Modest Gains
In the GTA, home prices are projected to grow by 5.0% in 2025. While this growth is slightly below the national average, the region remains a hub for immigration and job opportunities, keeping demand high for both homes and investment properties.
Quebec City: A Surprising Standout
Quebec City leads the country with a forecasted 11.0% year-over-year price increase. The region’s affordability compared to other urban centers is attracting both first-time buyers and retirees, fueling its rapid growth.
Edmonton and Regina: High Growth in the Prairies
Both Edmonton and Regina are forecasted to see a 9.0% price increase in 2025. These markets are benefiting from renewed economic activity in the energy sector, as well as increased migration to more affordable provinces.
Other Regional Growth Forecasts
- Calgary: 4.0% growth
- Vancouver (GVA): 4.0% growth
- Ottawa: 4.0% growth
- Halifax: 4.0% growth
- Winnipeg: 4.0% growth
While these regions show modest gains compared to Quebec City and the Prairies, they reflect the overall trend of steady, predictable growth across the country.
Factors Driving the Market in 2025
1. Stabilizing Interest Rates
The Bank of Canada’s recent decisions to hold interest rates steady are giving buyers more confidence in their borrowing capacity. Stable rates mean fewer surprises for homebuyers, making it easier to plan for mortgage payments.
For the latest on interest rates, check out Bank of Canada’s updates.
2. Easing Supply Chain Issues
Pandemic-related supply chain disruptions significantly impacted new housing developments over the past few years. In 2025, improved supply chain stability is expected to accelerate construction projects, helping to meet demand in key markets like Ontario and British Columbia.
3. Immigration and Population Growth
Despite recent reductions in immigration targets, Canada’s population continues to grow steadily, particularly in urban centers. This sustained growth ensures ongoing demand for housing across the country.
4. Regional Economic Strength
Economic recovery in resource-rich provinces like Alberta and Saskatchewan is contributing to higher home prices in cities like Edmonton and Regina. Meanwhile, Quebec’s economic stability is making cities like Montreal and Quebec City attractive for buyers.
Opportunities for Buyers and Investors
For Buyers:
The return to long-term price stability is good news for buyers, as it reduces the risk of overpaying in a volatile market. First-time homebuyers, in particular, can benefit from the predictable growth, allowing them to enter the market with greater confidence.
For Investors:
Steady price increases and strong regional growth offer lucrative opportunities for investors. Regions like Quebec City, Edmonton, and Regina stand out as high-growth markets with potential for significant returns on investment.
Tips for Success:
- Do Your Research: Focus on regions with high growth potential and consider future infrastructure projects.
- Lock in Rates Early: With interest rates stabilizing, securing a mortgage early in 2025 could save you thousands over the life of your loan.
- Think Long-Term: The steady market conditions make this an excellent time for long-term investments in real estate.
What This Means for Ontario
Ontario’s housing market is set to benefit from the overall stability forecasted for 2025. The GTA’s steady growth rate of 5.0% reflects a balanced market, while areas like Ottawa (4.0%) and smaller cities like Windsor and Kingston are expected to remain attractive options for buyers seeking affordability.
The province’s diverse economy and infrastructure projects, such as GO Train expansions and highway improvements, continue to make Ontario a desirable place to live and invest.
Conclusion
The Canadian housing market in 2025 is moving toward a period of stability, with home prices returning to long-term growth patterns. For buyers, this means a less volatile market and more predictable pricing. For investors, high-growth regions like Quebec City, Edmonton, and Regina present exciting opportunities.
By understanding regional trends and market drivers, you can make informed decisions and capitalize on the opportunities that 2025 has to offer. For more insights, visit Royal LePage’s Housing Market Forecast and keep an eye on updates from the Canadian Real Estate Association.