Nearly half of Canada’s major housing markets are seeing downward price adjustments, though the country’s housing market is largely performing a rebalancing act.
In March, the national RPS-Wahi House Price Index — which is based on the latest monthly actual home values in 1,000 towns and cities across the country — declined by 3% on a year-over-year basis.
This is a slightly larger annual decline than what was observed in the first two months of the year, when the index was falling at a rate of 2% annually. The deeper drop at the national level is at least partly a function of more widespread regional price reductions.
Notably, a sixth major market entered negative territory in March. Last month, Halifax saw values tumble by 2% year over year, trailing Ottawa, which in February had become the fifth major urban centre to post a decline.
“The Canadian housing market is performing a rebalancing act,” says RPS-Wahi Economist Ryan McLaughlin. “Like other previously hot housing markets currently experiencing slowdowns, Halifax appears to be returning to more balanced conditions rather than beginning a pronounced downturn,” he continues.
Prices Climb in 7 Major Canadian Housing Markets
Over the past several months, high-flying markets such as Edmonton, Calgary, Saskatoon, and Regina have all seen previously strong price gains clipped, returning to more balanced conditions. For instance, while active listings have been increasing in Calgary — which was Canada’s hottest housing market as recently as 2024 — the number of properties for sale remains below year-ago levels. “Significant exceptions to the balancing trend in places like the Prairies are markets in BC’s Lower Mainland and the Greater Toronto and Hamilton Area,” notes McLaughlin.
During the Canadian housing market’s recalibration, the gap between Montreal and Quebec City and everywhere else has only widened, as urban markets in B.C. and Ontario — which are more heavily exposed to condo investment — have yet to rebound.
Multi-Family Housing Weakness Spreads
Price declines are not just intensifying regionally over the past several months — they have also become further entrenched by housing type.
Last fall, condo values were depreciating far more rapidly than any other housing type. Now, they have been roughly matched by townhouse declines, while year-over-year price reductions for semi-detached properties have also accelerated.
Although detached home values slid further on an annual basis in March, they continue to hold up better than all other housing types.
“Looking ahead, macroeconomic uncertainty and rapidly evolving geopolitical strife make it difficult to confidently predict where the market is heading, but the RPS-Wahi House Price Index will continue to be a leading indicator,” McLaughlin concludes.
Wahi is a Canadian real estate platform, and Real Property Solutions (RPS), is a Canadian provider of property valuation services.
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