Canadian home prices posted their steepest decline in more than two decades, falling 20% from their March 2022 peak as elevated borrowing costs and economic uncertainty continue to weigh on the market.
The national benchmark home price stood at $679,600 in November 2025, down 3.7% from a year earlier, according to the Canadian Real Estate Association. The decline marks the largest price correction since the early 1990s housing crash, when prices fell approximately 23% nationally over six years.
Home sales declined 10.7% compared with the same month last year. The association said housing activity has entered a “holding pattern” heading into 2026.
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Shaun Cathcart, CREA’s senior economist, said sellers made price concessions to complete transactions before year-end following a mid-year rally that has since stalled.
The Teranet-National Bank composite index rose 0.4% in November after seasonal adjustment, marking the fourth consecutive monthly increase following seven months of declines.
Regional markets showed contrasting trends. Quebec home prices reached record highs, with benchmark prices rising 8.3% year-over-year. Ontario experienced the sharpest provincial decline, with benchmark prices falling 6.3% year-over-year to $777,800.
The current downturn is different from previous corrections. During the 2008 financial crisis, Canadian home prices fell a modest 9.5% nationally, compared with steeper US declines.
Market conditions remain balanced nationally, with inventory up 8.5% from a year earlier but 2.5% below the long-term average. Months of inventory remained at 4.4 months, near the long-term average of five months.
Read: Price Concessions Mount as Canadian Housing Market Cools Into Winter
Analysts expect the market to remain subdued near-term given concerns about employment and potential US tariffs affecting the Canadian economy.
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