Sales picked up a little compared to March, which is normal for this time of year. But when year of year, home sales were actually down 23.3% compared to last April. At the same time, more homes went up for sale about 8.1% more listings than last year. So, if you’re house hunting, you’ve got more options right now.

The average selling price was around $1.11M, down 4.1% from last year. But month-over month prices increased albeit modestly for the third month in a row. The market is giving buyers a bit more power these days prices are lower, and there are more homes to choose from. Some buyers are still holding off though, waiting for interest rates to go down and the economy to feel more stable.

If things improve like interest rates dropping or the economy getting more predictable we could see more people jumping back into the market.

Buyers have more room to negotiate, and sellers need to price smart to stay competitive.

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As expected, spring brought a bit more action to the market compared to March. More homes were sold in April than the previous month, which is pretty normal for this time of year. But here’s the thing: when you compare it to April last year, home sales were actually down by 23.3%.

That means fewer people are buying homes compared to a year ago—and one of the main reasons is that many are waiting for borrowing costs to come down. People also want a bit more clarity about where the economy is heading before making a big decision like buying a home.

Prices Have Dropped

The average selling price in the GTA in April 2025 was $1,107,463, which is down 4.1% from last year. And the MLS® Home Price Index, which gives a better picture of price trends, dropped by 5.4% year-over-year. However, it’s worth noting that average prices have now increased for the third month in a row. So while prices are still lower than they were a year ago, they have been quite stable with modest price increases on a on a month-to-month basis.

What does that mean for buyers and sellers?

• For buyers: Lower prices, combined with slowly improving borrowing conditions, mean monthly mortgage payments are becoming a bit more affordable. You also have a lot more homes to choose from right now, giving you some negotiation power.

• For sellers: It's a more competitive market, so pricing your home right is key. With inventory being higher, buyers have options—and they’re taking their time to find the best deal.

More Homes Are Being Listed

New listings rose by 8.1% compared to April 2024. That’s good news for buyers—there’s more inventory on the market, which gives you more choice and helps balance prices.

Economic Uncertainty Still Looms

There’s still a lot of uncertainty floating around—especially when it comes to the broader economy and Canada’s trade relationship with the U.S. According to TRREB President Elechia Barry-Sproule, if things improve economically and internationally, we might see a bump in market activity in the months to come.

Buyers may find more breathing room to make decisions, while sellers will need to adjust their expectations and work with the right strategy to sell in today’s market.

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The Canadian housing market started 2025 on two very different paths—some areas are heating up, while others are cooling down.

Let’s start with the big picture. Home prices across Canada went up slightly in the first few months of the year. On average, prices rose 2.1% compared to last year, and 1.2% compared to the end of 2024. But not every area is following the same trend.

In expensive cities like Toronto and Vancouver, home prices have actually gone down a bit. In the Greater Toronto Area (GTA), prices dropped by 2.7% year-over-year, and condos saw an even bigger drop of 4%. Many buyers in these cities are feeling unsure because of ongoing political and economic issues—especially the trade tensions with the U.S. As a result, some people are waiting to buy, hoping for more clarity or better deals.

On the other hand, more affordable areas like Quebec, the Prairies, and Atlantic Canada are seeing steady growth. Quebec City is leading the way with a 17% price increase compared to last year. Montreal is also seeing strong growth. These regions are benefiting from a mix of lower interest rates, fewer homes for sale, and strong demand from buyers looking for more budget-friendly options.

When it comes to how Canadians feel about the economy, it’s a mixed bag. About half of Canadians say they’re confident in the country’s economic future, while the other half are not. People in Quebec are the most optimistic, while those in Manitoba, Saskatchewan, and Alberta feel the least confident—especially in places like Fort McMurray.

Despite the uncertainty, Canada’s real estate market is holding up well. Our financial system is strong, and even with all the global challenges, home prices remain fairly stable. Interest rates have come down quite a bit since last year, making it a better time for some buyers to borrow money. Experts say more rate cuts could come later this year if things stay on the current path.

With a federal election coming soon, housing affordability is a big issue. Each political party has a plan to make housing more accessible—whether that’s building more homes, cutting taxes, or helping first-time buyers. While these ideas could help over time, real change will take cooperation and long-term effort from all levels of government.

Looking ahead, Royal LePage expects home prices across Canada to rise about 5% by the end of the year. In the GTA, prices are expected to rise by 3.5%, though that’s a bit lower than earlier forecasts because the market has been slower than usual.

Canada’s housing market is split. Expensive cities are seeing a slowdown, while smaller, more affordable regions are picking up speed. If you’re buying or selling, it’s important to understand your local market. In quieter markets like Toronto, there may be good opportunities for buyers to negotiate. In faster-moving areas like Quebec, acting quickly could make a big difference.

No matter where you are, the real estate market continues to be a solid long-term investment—and those who stay informed and prepared will be in the best position to make smart decisions.

Check out the Royal LePage Q1 2025 report here.