May 16, 2025
Canada’s real estate market continues to weaken, with home prices falling sharply in April amid tepid demand. Data from the Canadian Real Estate Association (CREA) reveals the composite benchmark price for a typical home dropped significantly last month, extending a broader trend of declining buyer appetite. Over the past few years, resistance to higher prices has grown, signaling mounting downward pressure on the market.
Key Highlights:
- Benchmark price fell 0.7% (-4,800)inAprilto4,800)inAprilto701,900—a 3.6% (-$26,100) annual decline.
- Prices have remained in a narrow range in recent months, hovering near 2021 levels.
- Annual price growth turned negative for the fourth consecutive month, marking the steepest drop since September 2024.
A Multi-Year Downtrend
Since peaking in March 2022, the benchmark home price has fallen 17.6% (-$149,700). CREA’s Home Price Index (HPI) has formed a “triple top” pattern, with each subsequent peak lower than the last—indicating weakening buyer confidence.
Beyond Trade War Jitters
While global economic tensions have played a role, the three-year slowdown suggests deeper issues:
- Affordability concerns persist despite lower borrowing costs.
- Shifting demand: Formerly high-growth markets like Toronto have seen sharp corrections, yet still struggle to attract buyers.
- Regional competition: Affordable cities are drawing talent away from pricier hubs, diminishing their long-term appeal.
What’s Next?
With buyers increasingly hesitant and prices failing to regain momentum, the market faces continued pressure. Whether this reflects a long-term recalibration or a temporary slump remains uncertain—but for now, the downturn shows no signs of reversing.
Richard Wang 