Canadian Home Sales and Prices Ease as Market Prepares for Spring Reset

Buyers remain cautious, sellers adjust expectations, and strategic opportunities emerge as Canada’s housing market closes out 2025 in balanced territory.

December 16, 2025 – National home sales edged down 0.6% in November, marking a soft landing to an otherwise stable second half of the year. Prices also declined, falling 3.8% year over year to an average of $674,800. With new listings down 1.6% and inventory sitting at 4.4 months of supply, the market remains broadly balanced, not overheated, but not stalled either. For buyers, sellers, and real estate professionals alike, this environment offers room for strategy, preparation, and long-term thinking.

A Balanced Market Built on Stability

Compared to earlier volatility, today’s housing landscape looks far more stable. While sales have slowed from mid-year highs, national activity is still well within pre-pandemic norms. In fact, the ratio of sales to new listings landed at 52.7% in November, a level consistent with balanced market conditions.

“The past few years have pushed Canadians to rethink what stability really means in real estate,” said Karim Kennedy, Chief Executive Officer of Coldwell Banker Canada. “Now, we’re seeing people make decisions with clearer intentions. Buyers and sellers aren’t chasing market trends. They’re acting when the timing and lifestyle fit. That shift will be key in how the next phase of the housing cycle unfolds.”

In many regions, sellers are making price concessions to close before year-end, while buyers are using this window to assess affordability and build a plan. The market may feel quieter, but it is not dormant. Behind the scenes, Canadians are preparing for what comes next.

Where Prices Stand

The national average home price was down compared to last year, but remains stable on a month-to-month basis. Most of the decline came from larger, more expensive markets such as Vancouver, Toronto, and southern Ontario, where prices saw the largest gains during the pandemic. Smaller cities and comparatively more affordable regions like Quebec City and the Prairies continue to perform relatively well.

The MLS Home Price Index also showed a moderate annual decrease of 3%, reinforcing the view that prices have corrected and are now holding steady. While these adjustments have narrowed the affordability gap slightly, many first-time buyers are still constrained by borrowing power and high living costs.

“Buyers today aren’t just looking for price relief. They want predictability,” explained Hashim Arthur, Chief Operating Officer of Coldwell Banker Canada. “That means being able to plan for a purchase without sudden shifts in rates, prices, or competition. We’re seeing a more intentional buyer emerge, and our role is to support them through the process.”

Rates, Policy, and What’s Next

Interest rates remain a key driver of market confidence. The Bank of Canada has held its policy rate at 2.25% following four cuts earlier this year. With borrowing costs at their lowest since 2022, qualified buyers are beginning to re-enter the market, though most are taking a deliberate approach.

Looking ahead, economists and real estate leaders expect more movement by spring. A stable rate outlook combined with pent-up demand could lead to a more active first half of 2026, especially if employment remains steady and consumer sentiment continues to improve.

Paul Abbott, National Vice President of Sales at Coldwell Banker Canada, emphasized the opportunity for brokers and agents to lead through the uncertainty: “Every market cycle creates space for professionals to set the tone. Right now, that means helping clients stay informed, managing expectations, and seeing beyond the headlines. We’re using this season to reconnect with our communities and position our brokerages for a strong, service-driven spring.”

If you are planning to sell your home in the coming months, preparation is everything. The current market may not feel fast, but it is functional and serious buyers are still looking.

Now is the time to work with a trusted agent, review your pricing strategy, and make sure your listing stands out. From staging and professional photos to pre-listing marketing, the small details matter more than ever.

Confidence Through Clarity

Canada’s housing market is heading into the new year with clarity and balance. It‘s not a seller’s market, and it’s not a buyer’s market. It’s a strategic market. Buyers are waiting for the right moment, sellers are becoming more realistic, and both sides are moving forward when the conditions align.

With signs pointing to a more active spring, the final weeks of 2025 offer a chance to prepare. Whether buying, selling or simply exploring your options, Coldwell Banker Canada sales professionals are here to help you move forward with clarity, confidence, and care.