In February 2025, Canada’s housing market painted a complex picture—with steep sales declines in Toronto and cooling trends in Vancouver, Calgary, and Edmonton—all amid a backdrop of economic uncertainty and shifting buyer sentiment.
Our research dives into these trends, revealing that factors such as looming U.S. trade tariffs, seasonal weather challenges, and the aftereffects of recent interest rate cuts have collectively dampened buyer enthusiasm, while an influx of new listings has begun to tip the scales in favor of purchasers.
By analyzing data from leading regional boards and economic reports, we uncover how these macroeconomic and local forces are converging to reshape market dynamics, setting the stage for a new era in Canadian real estate.
Below is an in‐depth look at the latest sales statistics across Canada’s major markets for February 2025, along with an analysis of emerging trends:
Canadian Real Estate in February 2025: Market Overview
In February 2025, Canada’s major urban centers are showing divergent trends amid continued economic uncertainty and seasonal challenges. Overall, buyers are starting to gain negotiating power as sales slow down and inventories increase—a trend that’s most pronounced in high-priced markets like Toronto and Vancouver. While some cities are showing moderate month‐over‐month recovery signs, year‐over‐year data suggest that caution remains on the buying side.
Toronto: A Sharp Decline Amid Trade Uncertainty
Toronto’s market has been notably affected by both harsh winter conditions and lingering concerns over U.S. trade policies. According to data from the Toronto Regional Real Estate Board, seasonally adjusted sales in the Greater Toronto Area dropped by approximately 28.5% in February—down to around 4,326 units—with year‐over‐year sales falling by roughly 27–28% and the home price index declining by 1.5% to about C$1,063,300. These steep drops highlight how buyer sentiment has weakened, likely prompting many households to adopt a “wait-and-see” approach as uncertainty mounts.
Calgary: Moderation and Emerging Buyer Leverage
In Calgary, the market appears to be taking a more measured turn. Recent RBC analyses indicate that Calgary experienced roughly a 12% dip in resales from January to February. Although sales have slowed, this decline—combined with rising inventories—suggests a transition toward a more balanced market. Buyers here may soon benefit from increased choice and stronger negotiating positions, even as price growth moderates.
Vancouver: A Reversal of Recent Gains
Vancouver’s market, which had been on a recovery path in previous months, saw resales fall by approximately 15% (seasonally adjusted) in February. The influx of new listings in anticipation of spring, combined with seasonal cooling, has created a surplus of inventory. Although overall price appreciation remains modest, the drop in transaction volume signals that buyers are stepping back amid affordability challenges and external economic pressures.
Edmonton: Mixed Signals in a Dynamic Market
Edmonton’s real estate statistics paint a nuanced picture. While new listings surged by about 10.7% in February—indicating sellers are eager to list as the spring season approaches—sales only increased modestly by 4.2% month-over-month. However, when comparing year-over-year, overall sales were down by 10.4%, suggesting that despite short-term improvements, the market is still grappling with subdued demand. Property type performance also varies significantly, with condo prices surging while single-family homes show slight declines.
Looking Ahead: A Shifting Landscape
Across these major cities, the cooling in sales activity and the buildup of inventory point to a shifting dynamic where buyers may soon have the upper hand. In Toronto and Vancouver, where the price tags are higher and uncertainty remains palpable, sellers might need to adjust expectations as market conditions favor more competitive pricing. Conversely, Calgary’s moderate slowdown hints at a transition phase, while Edmonton’s mixed data suggests localized pockets of resilience that could drive recovery if external pressures ease.
With the potential for further rate cuts and possible stabilization of trade tensions, market watchers will be keeping a close eye on whether these trends lead to renewed buyer confidence in the coming months.
In summary, February 2025 reveals a market in transition—one where economic headwinds and seasonal factors have tempered activity, giving buyers increased leverage. Sellers across Canada may need to recalibrate pricing and strategy, while buyers could soon find themselves with more choice in an increasingly balanced market.
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