Canada’s Housing Market 2025: A Year of Reset

As 2025 winds down, Canada’s housing market looks steadier than it has in years. There’s talk about home sales ending the year at multi-year highs, but the real story is quieter. Prices have levelled, sales are ticking up in places, and people are getting used to this new normal. For buyers and sellers watching Canadian homes for sale, it’s not a rush — it’s a reset.

A Closer Look at the Numbers

The idea of a record-breaking year makes headlines, but the data tells a different story.
 By the end of 2025, total home sales are expected to reach around 473,000 transactions, as per CREA. That’s roughly one per cent lower than last year. The average national home price sits near $676,700, down just over a percent from 2024.

It’s not a crash or a boom — just the middle ground the market’s needed.  For now, prices are holding, activity is returning, and confidence is slowly rebuilding after two up-and-down years. Moreover, high borrowing costs still sting, but the panic of last year has eased off.

What’s Moving the Market

A few things are keeping this market in check.

Rates Are Still Heavy

Even though we’ve seen some easing, mortgage rates remain much higher than they were a few years ago. That’s still limiting what many people can afford, especially in provinces like Ontario and British Columbia, where prices were already steep.

More Listings, More Breathing Room

Sellers have started to come back. The sales-to-new-listings ratio in Ontario sits around 34%, which leans toward a buyer’s market. There’s more choice now, and deals are taking longer to close.

Big Provinces Are Slowing Things Down

Ontario and B.C. continue to weigh on national numbers. Both are cooling faster than smaller regions like Alberta or Atlantic Canada, where sales have actually picked up. The size of Ontario’s market means that even small shifts there affect the national average.

Ontario’s Situation Right Now

Ontario’s situation is currently relatively stable; the average price across the province in September hovered near $829,000. That’s roughly flat compared with last year.

Buyers have the upper hand in most areas. Homes stay on the market longer, and sellers are learning to price more realistically. It’s not the frenzy of the early 2020’s, however buyers are negotiating again, comparing offers, and moving at their own pace.

Cities like Mississauga, Oakville, and Brampton are seeing a mix of quiet consistency and local variation. For instance, detached homes and bungalows still get attention, but gone are the days of instant sales. Instead, we’re back to measured decision-making, which most agents would agree is healthier for everyone.

Quick Market View – 2025

If You’re Looking to Buy

If you’re a buyer on the lookout for great homes, this year is comparatively less chaotic than the years before. This time, there’s room to think, compare, and negotiate. You can expect more stable pricing, alongside realistic sellers. Amongst these sellers, many are open to flexible closing dates or small concessions to get deals done.

The key this year is patience. Well-kept homes in good school districts still move fast, but you can take your time with the rest. For new-build buyers, especially those looking for new homes for sale around the GTA, builders are adjusting incentives quietly — not discounts in big headlines, but small perks that make a difference.

If You’re Selling

Sellers have to work a little harder this year, but the market isn’t cold. Homes that are priced fairly and presented cleanly still sell at strong numbers. The gap between asking and selling prices has widened, yet buyers aren’t expecting deep discounts either.

In Oakville and Mississauga, detached homes and bungalows remain solid performers. Buyers in those segments aren’t chasing bargains; they’re chasing quality. A house that’s been updated, landscaped, and photographed well can still stand out and sell quickly.

What’s changed is the pace. The process takes time, and that’s okay. The urgency is gone, replaced by realism.

Business and Market Perspective

From a business standpoint, 2025 has been a reset year. Developers, agents, and brokerages have stopped framing every uptick as a “boom.” Instead, the tone is more grounded — data-driven, realistic, and forward-looking.

For a platform like Bungalow Finder, the focus stays the same: connecting serious buyers with homes that fit how people actually live. The demand is consistent whether it’s a bungalow in Oakville, a family home in Burlington, or a downsizer’s retreat in Mississauga. People are still moving — just more carefully, with better planning.

That kind of steadiness is good for the market. It makes pricing more transparent and keeps expectations in check.

Outlook for Late 2025 and 2026

Heading into 2026, analysts expect things to look more or less the same, slightly better. If interest rates ease a bit, activity should pick up again. The buyers who’ve been waiting on the sidelines might finally step in.

The national numbers may not break records, but by most standards, 2025 has been a healthy year. Homes are selling, prices are holding, and the extremes of the last market cycle are behind us.

The Bottom Line

Despite the optimistic headlines, 2025 isn’t a year of record highs — it’s a year of quiet recovery. National home sales are holding steady, prices have stopped sliding, and buyers are moving again, but carefully. What’s taking shape is a market that’s learning to live within its limits. People are watching rates, comparing listings, and making slower, more brilliant moves. In cities like Mississauga and Oakville, that means stability rather than sharp climbs.

FAQs

1. Are Canadian home sales really hitting multi-year highs in 2025?

Not quite. Sales have improved, but they’re closer to steady than record-breaking. The market’s just finding balance again.

2. What’s happening with bungalow prices in Ontario?

Bungalow prices in Mississauga and Oakville are holding firm. Some areas are seeing small gains, but nothing dramatic.

3. Will housing prices go up in 2026?

They might rise a little if interest rates ease, but no one’s expecting a big jump — just slow, steady movement.