Canadian home prices have continued to fall, dropping nearly three percent since June 2025 [1].
The trend indicates a cooling real estate market that may impact homeowners' equity and the accessibility of housing for new buyers across the country.
Kamil Karamali of CTV News said the new data shows a steady decline in home prices [1]. This downward trend is particularly evident in the Toronto area, where prices tumbled 5.7% in the fourth quarter of 2025 [2]. Reports indicate that prices in the Toronto region are expected to keep falling throughout 2026 [2].
However, the market is not uniform across all regions. While national data suggests a broad decline, some reports indicate the trend may be shifting. According to CP24, there are signs that the steady price drop for new homes is starting to climb in certain provinces [3].
This contradiction between national averages and regional new-home data suggests a fragmented recovery. While the Toronto market experienced a sharp 5.7% drop [2], other areas may be seeing a reversal in the decline of new construction costs, or demand [3].
Statistics Canada remains the primary source for these figures, tracking the volatility of the housing sector as it navigates the current economic climate. The disparity between the broader market decline and the rise in new home prices in specific provinces highlights the complexity of the current real estate landscape.
“Canadian home prices have continued to fall, dropping nearly three percent since June 2025.”
The divergence between the general decline in home prices and the reported rise in new home prices in some provinces suggests a bifurcated market. While established homes in major hubs like Toronto are losing value, new developments may be buoyed by different economic drivers or supply constraints, potentially creating a gap between the resale and new-build markets.
