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CREA Updates Resale Housing Market Forecast Amid Continuing Economic Uncertainty

Ottawa, ON July 15, 2025 – The Canadian Real Estate Association (CREA) has updated its 2025 and 2026 forecasts for home sales activity and average home prices via the Multiple Listing Service® (MLS®) Systems operated by Canadian real estate boards and associations.

 

In CREA’s April forecast, the expectation was flat sales and average home prices at the national level in 2025 compared to 2024. It was a significant revision to January’s forecast of a recovery year, as the threat of steep tariffs from the United States had become reality and had to be incorporated into the outlook.

For this most recent forecast, revisions are much smaller. Sales and average home prices are now forecast to post small declines in 2025 compared to 2024, as 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.

The good news is markets appear to be entering their long-expected recovery phase, fueled by pent-up demand, lower interest rates, and an economy that is expected to avoid worst-case tariff scenarios. As such, it’s looking like the timing of the start of that recovery may have been shifted from the spring to the summer by the cloud of extreme economic uncertainty earlier this year.

Some 469,503 residential properties are forecast to trade hands via Canadian MLS® Systems in 2025, representing a 3% decline from 2024. That said, British Columbia, Alberta, and Ontario are the only provinces forecast to post declines this year, slightly offsetting gains everywhere else.

The national average home price is forecast to edge back by 1.7% on an annual basis to $677,368 in 2025, which is about $10,000 lower than was forecast back in mid-April. 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.

In 2026, national home sales are forecast to rebound by 6.3% to 499,081 – which would put activity back on track with what was expected in the April forecast.

That said, it would still mark the fourth straight year for sales failing to crack the half million mark, something that has only occurred seven times going back to the first recorded instance in 2007.

The national average home price is forecast to increase by 3% from 2025 to $697,929 in 2026. This would mark the sixth straight year where the national average home price remained in and around the $700,000 range.

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 they year.

Each quarter, CREA updates its forecast for home sales activity and average home prices via Multiple Listing Service® (MLS®) Systems of Canadian real estate boards and associations. CREA’s next forecast will be published on Wednesday, October 15, 2025.
 

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About the Canadian Real Estate Association

The Canadian Real Estate Association (CREA) is one of Canada’s largest single-industry associations. CREA works on behalf of more than 160,000 REALTORS® who contribute to the economic and social well-being of communities across Canada. Together they advocate for property owners, buyers and sellers.

For more information, please contact:
Pierre Leduc, Media Relations
The Canadian Real Estate Association
Tel.: 613-237-7111 or 613-884-1460
E-mail: pleduc@crea.ca

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