Major Canadian housing markets posted steep month-over-month price declines in July 2025, with Toronto and other Ontario cities leading significant drops as trade tensions with the United States continue to weigh on buyer confidence, according to new real estate data.
Toronto home prices plummeted 8.9% from June to July, marking the steepest monthly decline among major Canadian markets, data from the Canadian Real Estate Association shows. The Greater Toronto Area saw average prices fall 4.5% month-over-month to hit their lowest July level since 2020.
Peterborough led all regions with a 9.1% monthly price drop, followed by Toronto’s 8.9% decline and Hamilton’s 7% decrease. Even traditionally stable markets like Ottawa and Calgary posted monthly declines of 5.4% and 4.7% respectively.
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Despite falling prices, sales activity surged nationally. Home sales rose 6.6% year-over-year in July and climbed 11.2% cumulatively since March. The Greater Toronto Area led the recovery in transaction volumes, though from historically low levels.
The price corrections come as active listings reached multi-year highs. Toronto-area inventory jumped 26.5% from last year, while homes now take an average 41 days to sell compared to 36 days in July 2024.
Industry experts point to ongoing US trade tensions and tariff concerns as primary drivers of the market softening, particularly affecting Ontario and British Columbia where affordability challenges persist.
National average home prices edged up just 0.6% year-over-year to $672,784 in July, reflecting the mixed regional performance across Canada’s diverse housing markets.
Information for this story was found via CREA, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
