Canada’s most expensive cities record price declines, while growth slows in other major markets in Q3

Across much of the country, rising inventory levels combined with easing borrowing costs are helping shift many real estate markets into a more balanced state. This is creating improved conditions for buyers, who are benefiting from more choice and better affordability than in recent years. However, not all buyers are ready to step back into the market. With some demand still sitting on the sidelines – whether due to lingering economic uncertainty, affordability concerns, or expectations of further rate cuts – most major cities have yet to experience a meaningful boost in buyer activity.

According to the Royal LePage® House Price Survey and Market Forecast released today, the aggregate price of a home in Canada recorded virtually no change in the third quarter of 2025, increasing just 0.1% year over year to $816,500. However, on a quarter-over-quarter basis, the national aggregate home price posted a decline of 1.2%, driven by depreciation in many major markets across the country over the summer. 

When broken out by housing type, the national median price of a single-family detached home increased 1.2% year over year to $860,600, while the median price of a condominium decreased 1.6% to $580,700. On a quarter-over-quarter basis, the median price of a single-family detached home and a condominium declined 1.1 and 1.9%, respectively. Price data, which includes both resale and new build, is provided by RPS Real Property Solutions, a leading Canadian real estate valuation company.

“Canada’s housing market is shifting toward balance, as easing prices, rising listings and renewed rate cuts improve affordability across most regions,” said Phil Soper, president and CEO, Royal LePage. “For the first time in years, buyers – especially in previously supply-strapped markets – have real choice and negotiating power. With confidence returning and further rate reductions expected into early 2026, we anticipate noticeably stronger activity by the spring.”

Following a slower-than-usual start to the year, home sales picked up late in the spring and have consistently increased over the last five months, according to the Canadian Real Estate Association (CREA). 

“Affordability is improving and the economic backdrop remains remarkably stable, yet consumer confidence is lagging,” said Soper. “Many buyers remain hesitant – some worried about broader economic uncertainty, others waiting to see if prices dip a little further before stepping in.”

Compared to the peak of pandemic pricing in the spring of 2022, national home prices have come down by approximately five per cent, driven by depreciation in the urban centres of Toronto and Vancouver, where prices are currently sitting more than 12% below the peak. Meanwhile, home prices have continued to appreciate in Quebec, the Prairies and Atlantic Canada. 

“Buyer sentiment is being influenced by a complex mix of economic and psychological factors,” said Soper. “Despite materially improved affordability in major cities, many Canadians – particularly younger ones – remain cautious amid high post-pandemic living costs, perceived job uncertainty, and general unease about our economic prospects. It’s understandable that some are waiting before making such a significant purchase.”   

According to a recent Royal LePage survey, conducted by Burson, more than four in five Canadians (82%) who say they are actively working towards the purchase of their first residential property say they are planning to hold off for at least another year.

Fall rate cut gives buyers another boost

In its scheduled September 17th announcement, the Bank of Canada cut the overnight lending rate by 25 basis points to 2.5%, the first rate cut since March. With trade tensions with the United States choking economic growth, the central bank’s Governing Council opted to lower the cost of borrowing. And, some economists expect there could be more cuts to come.

“Inflation has remained within the Bank of Canada’s target range for twenty consecutive months, a positive sign for the economy,” said Soper. “Unemployment has stayed manageable, yet job insecurity, particularly among younger Canadians, will persist until Canada reaches a new trade agreement with the United States. While mortgage rates remain above their pandemic lows, the Bank’s recent rate cut is easing pressure on borrowers. Rates are once again in the threes – a level that feels supportive by the standards of the past two decades.”

Read Royal LePage’s third quarter release for national and regional insights. 

Third quarter press release highlights:

• The Greater Montreal Area’s aggregate home price increased 4.9% year over year, while the greater Toronto and Vancouver markets recorded declines of 3.5% and 3.1%, respectively, in the third quarter. 

• National year-end forecast adjusted downward due to price declines in greater regions of Toronto and Vancouver, with the aggregate price of a home now expected to increase a modest 1.0% in Q4 2025 over the same quarter last year.

• Royal LePage applauds federal government’s commitment to build more housing; warns that greater efforts are needed to materially boost supply long-term.

NATIONAL PRESS RELEASE

Q3 PRICE CHART

FORECAST CHART

Architecturally-unique with a charming elegance, century homes hold a special place in the hearts of homeowners and history enthusiasts alike. Their timeless designs, intricate details, and distinguished past make them a popular choice for buyers seeking a property with character. 

However, owning a home that’s stood the test of time comes with its own set of challenges. If you’re considering investing in a century home, this guide will walk you through key details to consider and questions to ask before making your decision.

What exactly is a ‘century home’?

A century home often refers to a property that is at least 100 years old. These homes are often recognized for their distinctive architecture, handcrafted features, and historical significance. From Victorian mansions to quaint farmhouses, century homes showcase the design trends of their era, making each one a unique piece of history.

While they offer undeniable charm, it’s important to remember that century homes may require more maintenance and care than newer builds. Understanding their unique characteristics is the first step in determining if this type of home aligns with your lifestyle and goals.

Should you invest in a century home?

Century homes have a lot to offer, from their distinctive character to the pride of owning a piece of history. However, they may not be the right fit for you. Consider the following:

Benefits:

• Unique architectural details such as crown molding, hardwood floors, and stained-glass windows

• Larger lot sizes and mature landscaping that are often hard to find in modern developments

• The charm and prestige of owning a historically-significant property

Challenges:

• Older homes often have outdated systems, such as plumbing, wiring, and insulation, which may require costly updates

• Potential for hidden issues, such as foundation cracks or outdated building materials like lead paint or asbestos

• Maintenance demands can be higher compared to newer homes

• Heritage designations can sometimes prevent desired updates

What red flags should I look out for when shopping for?

As you walk through a century home, here are some red flags you can look for without needing specialized tools or expertise:

• Uneven floors: Notice if the floors feel sloped or saggy – this could indicate structural or foundation issues.

• Drafts around windows and doors: Check for drafts by feeling with your hand or using a lit incense stick, watching for uneven smoke movement. This may suggest poor insulation or aging window frames.

• Cracks in walls or ceilings: Visible cracks, especially near windows and doors, can be signs of settling or structural problems.

• Peeling paint or stains: Water stains on ceilings or walls may point to roof leaks or plumbing issues.

• Mildew or musty smells: These odours could indicate moisture problems or hidden mould.

• Doors and windows that stick: Difficulty opening or closing doors and windows might signal foundation shifting.

• Rusty or corroded fixtures: Look for rust on pipes, radiators, or other metal fixtures, which could hint at plumbing concerns.

• Exterior wear and tear: Examine the condition of siding, roofing, and gutters for signs of neglect or age.

What questions should I ask before purchasing a century home?

Ask these 10 questions when shopping for a century home to ensure you’re making an informed decision:

1. What is the home’s maintenance and renovation history?

2. Are there any heritage restrictions on the property?

3. What do the inspection reports reveal?

4. What’s the condition of the foundation and basement?

5. What heating system is being used?

6. Have the windows or doors been replaced? If so, when?

7. If there’s a chimney, does it require repair/replacement?

8. Are there receipts/warranties for any past work?

9. Are there programs or grants available in the area to help offset any replacement or renovation costs?

10. Are there any pest problems?

Century homes offer a rare opportunity to own a property steeped in history and charm. However, buying one requires careful consideration and due diligence. By understanding what to look for and asking the right questions, you can make a confident decision that ensures your century home remains a place for family and friends to gather for years to come.

If you’re ready to start your search for the perfect century home, connect with a Royal LePage® agent today. With their expertise, you can navigate the process with confidence and uncover a home that meets your needs and aspirations.

The Bank of Canada delivered another 25 basis point cut to the key lending rate

Today, the Bank of Canada announced that it has cut the overnight lending rate yet again by 25 basis points to 2.25%. This is the second consecutive rate cut the Bank has made this fall, and the third cut this year.

Though the global economy has held up surprisingly well against the surge in tariffs from the United States, the effects are starting to show, according to the Bank. Trade patterns are shifting, and uncertainty around ongoing tensions is discouraging investment in many countries. In Canada, those pressures were felt in the second quarter, when the economy shrank by 1.6%, due to falling exports and weaker business investment.

“Canadian businesses and households are feeling the consequences of increased US protectionism. It is difficult, and ongoing uncertainty is compounding the difficulty. For many months, we have been stressing that monetary policy cannot undo the damage caused by tariffs. Increased trade friction with the United States means our economy will work less efficiently, with higher costs and less income. Monetary policy can help the economy adjust as long as inflation is well-controlled, but it cannot restore the economy to its pre-tariff path,” said Tiff Macklem, Governor of the Bank of Canada, in a press conference with reporters following the announcement.

“The Bank of Canada is focused on ensuring Canadians continue to have confidence in price stability through this period of global upheaval.”

In September, Canada’s Consumer Price Index (CPI) rose 2.4% year over year, an increase from the 1.9% gain reported in August. While inflation edged higher, the Bank of Canada proceeded with a rate cut, signaling its focus on supporting growth amid signs of economic softness. The unemployment rate held steady in September, following an uptick the previous month, suggesting lingering weakness in the labour market.

“US trade policy remains unpredictable, as events over the weekend reminded us. There continues to be considerable uncertainty, both about US tariffs and their impacts. The range of possible outcomes is wider than usual – we need to be humble about our forecast. If the outlook changes, we are prepared to respond,” said Macklem.

Second fall rate cut a tailwind for homebuyers 

Following a slower-than-usual spring, housing activity in Canada’s largest markets edged higher through the summer months. With borrowing costs decreasing yet again, the stage is set for sidelined buyers to return to the market. 

According to the latest Royal LePage® Home Price Update and Market Forecast, the aggregate1 price of a home in Canada eased upwards modestly in the second quarter of 2025, increasing 0.3% year over year to $826,400. On a quarter-over-quarter basis, the national aggregate home price decreased by 0.4%.

“Unemployment has stayed manageable, yet job insecurity, particularly among younger Canadians, will persist until Canada reaches a new trade agreement with the United States,” said Phil Soper, president and CEO of Royal LePage, in the report. “While mortgage rates remain above their pandemic lows, the Bank’s recent rate cut is easing pressure on borrowers. Rates are once again in the threes – a level that feels supportive by the standards of the past two decades.”

The Bank of Canada will make its next and final interest rate announcement for 2025 on December 10th.

Read the full October 29th report here. Want to know more about how the overnight lending rate works? Read our explainer on how the Bank of Canada uses this financial tool.

Welcome to 1250 Delta Ave in the very popular Brentwood Park Neighbourhood.

This 4 bed & 3 bath home is in a fabulous location with Brentwood Park Elementary & Alpha Secondary School a short stroll away.

Good size main floor with large living room, sliders off the dining room to the large sundeck. Kitchen has cook top & a wall oven. Convenient laundry off kitchen. The bedrooms are a good size.

Hardwood flooring through much of main level. Lower level has a rec room +bedroom+ den area possible 2nd kitchen & laundry area.

Lots of storage & a whole lot more. Great yard for children & Fido. Lane access with a double garage & open parking for many vehicles.

May have the ability to have a suite for extended family, check with city. Brentwood Centre & Skytrain close by.

OPEN HOUSES SAT & SUN 2-4pm