Economic Anxiety Cools Spring 2025 Home Sales: Q2 Report

The Canadian real estate market—typically energized by a spring buying surge—has experienced a surprisingly quiet second quarter in 2025. Despite stable interest rates and a strong employment backdrop, widespread economic concerns, global instability, and domestic political shifts weighed heavily on buyer confidence. The result: a sluggish start to the busiest real estate season of the year, with home prices staying mostly flat and activity softening in some of Canada’s largest and most influential markets.

This Q2 2025 housing market report outlines national and regional price trends, explains why buyer hesitation is dominating the market, and explores what the second half of the year may hold for Canadian real estate.

National Market at a Glance

Canada’s aggregate home price rose just 0.3% year-over-year in Q2 2025, coming in at $826,400, while quarter-over-quarter, prices declined slightly by 0.4%. The market continues to tread water as economic uncertainty limits the usual spring momentum.

Inventory levels increased in many markets—giving buyers more options—but demand hasn’t followed at the same pace. Sellers are still listing homes, but buyer activity remains muted as many households adopt a cautious “wait and see” approach.

Why the Spring Market Slowed Down

Spring is typically the most active time for real estate, but in 2025, several forces disrupted this seasonal trend:

• Interest Rate Stability with Uncertain Outlook: The Bank of Canada maintained its key lending rate at 2.75%, citing concerns about global trade tensions and the need for more economic clarity. While stable rates are often good news for real estate, uncertainty about future rate moves left some buyers on the sidelines.
• Political Disruption: Canada saw a change in leadership this spring, with the swearing-in of a new Prime Minister. Election-related speculation, particularly around housing policy and the federal budget, created temporary uncertainty in markets like Ottawa, where government employment plays a major role in household finances.
• Global Economic Tensions: Trade instability and international conflicts contributed to a lack of confidence among both buyers and investors. Concerns about the broader economy have become deeply tied to real estate activity, especially in high-priced urban markets.

Affordability Improving in Key Markets

Despite the muted activity, there is a silver lining: housing affordability has shown signs of improvement, especially in the most expensive provinces.

Since the 2022 peak in home prices, national values have declined by 3.6%, while average weekly earnings have climbed by 11.8%. This gap—alongside stable interest rates—has helped shift the affordability equation in favor of buyers, particularly those entering the market for the first time.

However, experts caution that this progress is fragile. A long-term solution still hinges on increasing housing supply across Canada to meet demand and stabilize pricing.

Regional Market Highlights

Greater Toronto Area (GTA)

Home prices in the GTA declined 3.0% year-over-year, settling at $1,155,300. Single-family detached homes saw a smaller drop of 1.2%, while condo prices fell by 5.6%.
Although the typical spring surge failed to materialize, a rebound in buyer activity from mid-May through June suggests the tide may be turning. Some first-time buyers are now viewing the current lull as a window of opportunity.

Greater Montreal Area

Montreal outperformed other major markets, with home prices rising 3.5% year-over-year to $620,100. Detached homes led growth at 5.7%, followed by condos at 3.1%.
 Despite a recent increase in listings, buyer interest remains strong—particularly among first-time buyers seeking affordable options in a still-accessible market. A gradual market cooling is expected into the fall as inventory builds.

Greater Vancouver

Vancouver home prices declined 2.6% year-over-year to $1,218,600, with detached homes down 2.4% and condos down 2.3%.
 Buyer urgency remains low, and a growing number of listings is pushing the market toward balance—or even oversupply in certain segments. Investor interest in new construction has cooled significantly, and many buyers are holding off in hopes of further price drops.

Ottawa

Ottawa recorded a modest 0.6% year-over-year increase to $782,100. The market started slow, influenced by the federal election, but open house traffic and multiple-offer scenarios began to re-emerge in June.
 The condo segment is especially active, serving as an affordable entry point for first-time buyers. A delayed spring is expected to shift momentum into a more active summer.

Calgary

Calgary’s market held steady with a 0.4% year-over-year gain to $696,500. Detached homes posted a 1.2% increase, while condo prices declined 1.6%.
 Inventory growth is giving buyers more options, contributing to a more balanced market. Sentiment remains positive, with consistent interest from both first-time and move-up buyers.

What Buyers Are Thinking

A recent national survey revealed that 28% of renters considered buying a home before renewing their lease. Their reasons for holding back included:

• Waiting for home prices to decline – 40%
• Waiting for interest rates to drop further – 29%
• Still saving for a down payment – 28%

This highlights a critical trend: buyers are interested, but hesitant. Economic conditions are not pushing people out of the market—they’re merely causing delays.

A Glimmer of Confidence Ahead

The final weeks of Q2 2025 saw the beginnings of an upward trend in showings and open house attendance. In major cities like Toronto and Vancouver, buyer interest is returning, even if transactions haven’t caught up yet.

Encouragingly, Canada’s June employment report was strong, and signs suggest that economic sentiment may begin to rebound. If confidence returns, the fall market could be significantly more active than spring.

Revised Market Forecast for 2025

Based on Q2 performance, the national forecast for year-end home prices has been revised slightly downward. Home values are now expected to increase by 3.5% year-over-year in Q4 2025. The bulk of this growth is likely to happen in the fall, assuming stability in the broader economy.

Forecasted year-end growth by region:

• GTA: +2.0%
• Montreal: +6.5%
• Vancouver: +1.5%
• Ottawa: +4.0%
• Calgary: +3.0%

These projections reflect cautious optimism, tempered by the possibility of further economic or political disruptions.

Policy Priorities for Affordability

With a new federal government in place, attention has shifted to policies aimed at improving affordability. Top priorities include:

• Streamlining permitting and approval processes
• Expanding infrastructure to support new development
• Incentivizing the creation of purpose-built rental housing

The upcoming federal budget will be critical in determining whether Canada can overcome its housing supply challenges in a meaningful way.

Final Thoughts

The spring 2025 housing market didn’t bring the usual wave of transactions, but it did provide an important signal: buyers are watching closely and waiting for the right moment to act. Economic anxiety may have cooled demand temporarily, but strong fundamentals—stable employment, growing wages, and rising inventory—are laying the groundwork for a potential rebound.

If confidence returns and policy action aligns with market needs, the latter half of 2025 could usher in a healthier, more balanced phase for Canadian real estate.

Closing on your home marks the end of one chapter—but immediate post-closing tasks prepare you for the next. Without completing these essentials, you risk hassles, security issues, or missed deadlines.

1. New Locks & Security Checks
    Immediately change or re-key all door locks and test window latches. Trust isn’t a given—you don't know who had access previously. Installing a basic alarm or smart home setup offers protection beginning day one.
2. Activate Utilities and Services
    Transfer utility accounts into your name before move-in. Schedule service start dates to align with your arrival so your appliances, heating, and Wi-Fi are ready. Proactive scheduling avoids unnecessary disruption.
3. Perform a Full Deep Clean
    An empty home is an ideal canvas for deep cleaning. Focus on corners, cabinets, baseboards, grills, and vents. Starting with a clean slate ensures your new environment is hygienic and welcoming.
4. Check Appliances & Home Systems
    Test appliances like oven, refrigerator, washer/dryer, plus HVAC and safety devices. Make sure each light, outlet, and faucet works. Early detection helps you address issues before they become costly obstacles.
5. Mail Forwarding & Address Updates
    Set up postal forwarding and notify essential services—banks, ID agencies, postal services—of your move. Streamline your transition and reduce frustration from missed mail or bills during your move.
6. Inspection Report Action Plan
    Review the home inspection and make a repair priority list. Schedule repairs for electrical or plumbing issues promptly, ideally before moving in. Early attention helps maintain your home’s condition and resale value.
7. Review Insurance & Warranty Information
    Confirm homeowner’s insurance is active and accurately reflects your new address and belongings. Review any included home or appliance warranties to understand how to file a claim if necessary.
8. Locate Emergency Shutoffs & Circuit Breaker
    Identify key shutoff valves and circuit breaker panel. Label them and ensure all household members know their location—this knowledge is essential in emergencies like flooding or power outages.
9. Plan In-House Projects Now
    Want to paint walls or switch out fixtures? Do so before moving in. Empty rooms make projects easier and help avoid damage to belongings later. It also helps minimize dust and disruption.
10. Meet Your Neighbors
     Whether over a quick hello or a note, introducing yourself builds goodwill. Neighbors can offer valuable tips—from garbage pickup schedules to security concerns—helping you integrate quickly and comfortably.

Key Takeaway
Post-closing tasks are more than bureaucratic—they’re foundational. By prioritizing these ten essential steps now, you’ll ensure a seamless move-in, greater security, and a more comfortable start in your new home.

Buyer & Seller Rights Before Closing: Don’t Sign Until You Read This

When it comes to buying or selling a home, most people assume the hard part ends once the offer is accepted. However, the time between acceptance and closing is one of the most critical phases of the real estate process. Both buyers and sellers have specific legal rights and responsibilities that protect them—if they know what to look for. Understanding these rights is key to avoiding disputes, costly delays, or even losing the deal.

1. Full Disclosure is Not Optional

One of the most fundamental rights buyers have is access to full disclosure. This includes any known material defects, renovations without permits, or history of damage (such as mold, flooding, or foundation issues). Sellers are legally required in most jurisdictions to disclose anything that could affect a buyer’s decision to purchase.

Buyers should review these disclosures carefully and follow up with questions or further inspections. Sellers must also avoid concealing problems, as failing to disclose can lead to lawsuits or canceled contracts—even after the sale.

2. Contract Timelines Are Legally Binding

Once a purchase agreement is signed, the deadlines listed within it become binding. Buyers must fulfill obligations like inspections, mortgage approvals, and earnest deposit payments on time. Likewise, sellers are bound to vacate the home, complete repairs, and allow property access as agreed.

Both parties should track these timelines closely. Missing even one deadline—without proper written extension—can be considered a breach of contract. In some cases, this can allow the other party to walk away or seek damages.

3. Contingencies Offer Protection—Use Them Wisely

Contingencies are legal tools that offer an “exit strategy” if certain conditions aren’t met. Common examples include home inspection contingencies, appraisal contingencies, and financing contingencies.

Buyers have the right to withdraw from the deal if the home fails inspection or the appraisal comes in low—without losing their earnest money. Sellers, on the other hand, are protected by contingencies like buying their next home or requiring the buyer to meet loan approval by a certain date.

Contingencies must be clearly written in the contract, and both parties should understand how they work before proceeding.

4. Earnest Money Is Not Automatically Forfeited

When buyers put down earnest money, it signals serious intent. However, many people wrongly believe this deposit is automatically lost if a deal falls through. In reality, buyers are protected by contingencies. As long as they cancel within the contractual rights (due to financing failure, inspection issues, or unmet terms), their deposit should be refunded.

Sellers are entitled to keep the earnest money only if the buyer breaches the contract unjustly. It's critical that both parties read the terms of the deposit refund policy, typically outlined in the purchase agreement.

5. Legal Review Is a Right, Not a Luxury

Before closing, both buyers and sellers have the right to legal representation. An experienced real estate attorney can review closing documents, help interpret confusing language, and ensure compliance with state and local laws. While not mandatory in every area, legal counsel is especially important in complex sales or when red flags arise.

In addition to an attorney, working with a qualified real estate agent can offer essential guidance. They ensure contractual obligations are met and help mediate negotiations should conflicts occur near closing.

Conclusion: Knowledge Is Your Strongest Contract

Real estate transactions can be emotional and complex. But knowing your legal rights before closing protects you from surprises that could derail your goals. Whether you’re buying your first home or selling a long-time property, don’t rush through the final steps. Read everything. Ask questions. Seek legal and professional support.

Remember—what happens before you sign on the dotted line is just as important as what happens after.

Selling Your Home? Avoid These Inspection Pitfalls to Close with Confidence

For sellers, the home inspection can either validate your hard work or unravel the deal you’ve spent weeks preparing for. It’s one of the most critical steps in the process and one that many sellers underestimate. A successful inspection isn’t just about passing—it’s about building trust and preserving your home’s value during negotiations.

1. Skipping Pre-Inspection Repairs

Minor issues like cracked tiles, squeaky doors, or leaky faucets might not seem urgent, but they leave a lasting impression. Buyers often view these as signs of broader neglect.
Pro Tip: Walk through your home as a buyer would. Better yet, get a pre-listing inspection to uncover potential red flags early—and fix them before they become leverage for buyers.

2. Blocking Inspector Access

A professional inspector will want to access everything: attic, furnace, electrical panel, basement, crawlspace. If anything is blocked or difficult to reach, it could cause delays or negative notes in the report.
Action Step: Ensure every part of your home is clean, decluttered, and accessible before inspection day.

3. Downplaying or Hiding Known Issues

It might be tempting to hide a minor roof leak or a foundation crack, but doing so can backfire. If the inspector uncovers it, it can erode trust and stall the deal.
Best Practice: Disclose known issues up front. Buyers appreciate honesty, and it gives you the chance to address them before they become deal breakers.

4. Overlooking Major Systems

Buyers want reassurance that key systems—plumbing, electrical, HVAC, roofing—are functional and well-maintained. If these haven’t been serviced in years, it may raise red flags.
Advice: Schedule service appointments and keep receipts. Showing proactive care reassures buyers and gives you the edge in negotiations.

5. Being Present During the Inspection

While it’s understandable to want to hear everything firsthand, your presence can make buyers uncomfortable. It may also inhibit open communication between them and their inspector.
What to Do Instead: Step out during the inspection and let your real estate agent handle communication. Trust the process—buyers need space to ask questions freely.

Closing Insight: Stay Ahead, Stay Honest

A clean inspection clears the path for a smooth closing. By preparing your home, fixing small issues, and maintaining transparency, you reduce surprises and increase buyer confidence. Don’t let simple mistakes derail your sale—approach the inspection as your final chance to impress.

Why You Should Use a Real Estate Agent to Find a Rental Property

Looking for a rental property might sound easy—but once you start the process, the complexities quickly pile up. Between misleading ads, tight timelines, and confusing lease terms, renters often find themselves stressed or settling for less. Fortunately, real estate agents aren't just for homebuyers—they’re a powerful resource for renters too.

Here’s why using an agent for your rental search is not just helpful—it’s smart.

1. Get Access to Verified Listings and Better Options

Many listings on public websites are outdated or outright scams. Real estate agents work with trusted listing services and landlord networks, giving you access to verified rental properties—some of which never make it to public platforms. This saves you time and drastically reduces the risk of wasting energy on fake or already-rented units.

2. Save Time and Streamline the Process

Searching for a rental can eat up hours of your time every week. A real estate agent will narrow down the best matches based on your budget, preferences, and location—then schedule viewings, coordinate with landlords, and manage paperwork. This allows you to focus on work, family, or your move, while they handle the heavy lifting.

3. Benefit from Expert Lease Advice and Negotiation

Leases can be complex and are often filled with legal language that renters may not fully understand. Your agent can explain terms clearly, ensure you're not agreeing to unfair conditions, and even negotiate better rent or perks on your behalf. Having a knowledgeable professional on your side gives you peace of mind before signing.

4. Avoid Scams and Legal Pitfalls

With online rental scams on the rise, it’s easy to get tricked into sending money to fake landlords or securing leases for properties that don’t exist. Agents offer a layer of protection—they confirm legitimacy, verify ownership, and walk you through safe payment procedures. You’re far less likely to fall victim to fraud when working with a licensed professional.

5. It’s Often Free for Renters

One of the biggest advantages? Real estate agents are often paid by the property owner, not the renter. That means you get professional guidance at no cost to you. Even when agents do charge a fee, their services are usually worth it in saved time, avoided scams, and better lease terms.

Final Thoughts

Finding a rental property doesn’t have to be stressful. By working with a qualified real estate agent, you simplify your search, stay protected from risks, and increase your chances of finding the perfect place faster. Whether you're relocating, upgrading, or moving out for the first time—having an expert on your side makes the journey smoother and smarter.

Corner Lots: The Pros, Cons, and What You Need to Know Before You Buy

When searching for your dream home, one detail that can have a major impact—but is often overlooked—is the lot placement. A corner lot, where a home sits at the intersection of two streets, offers a unique mix of advantages and drawbacks. Whether you're buying for personal use or investment, understanding the full picture is essential.

Here’s what you need to know about corner lots before making your final decision.

1. What Makes a Corner Lot Unique?

Corner lots are properties located at the meeting point of two roads, often offering more space and visibility than interior lots. They typically have more frontage (the space facing the street), which means more exposure, easier access, and sometimes a bigger yard.

Depending on the neighborhood and orientation, corner lots can vary widely in size, layout, and privacy. These lots tend to stand out architecturally because of the dual exposure, giving homeowners more flexibility with design.

2. The Benefits of Buying a Corner Lot

There are several key advantages that make corner lots attractive to many buyers:

• More Space and Natural Light: With fewer direct neighbors, corner homes often enjoy larger yards, more windows, and better sunlight exposure, especially on two or more sides of the home.
• Curb Appeal and Visibility: A home on a corner lot can feel grander or more noticeable. The increased visibility often enhances curb appeal, which can boost resale value in the future.
• Extra Parking or Access: Corner lots may allow for dual driveways, side entrances, or additional parking—perfect for large families or entertaining guests.
• Design Flexibility: For those planning to renovate or build, corner lots may provide more design options, especially when it comes to wraparound porches, landscaping, or entrances.

3. The Drawbacks You Should Consider

Despite the perks, corner lots come with a few concerns worth noting:

• More Traffic and Noise: Being at the intersection of two streets means potentially dealing with heavier foot or vehicle traffic, especially if located near busy roads or schools.
• Reduced Privacy: With fewer neighbors on just one or two sides and more street exposure, privacy can be limited, especially in the yard areas.
• Increased Maintenance: Homeowners are usually responsible for more sidewalk or boulevard maintenance, like shoveling snow or trimming grass along both sides of the property.
• Higher Insurance or Taxes: Some municipalities charge higher property taxes or insurance premiums on corner lots due to the extra land or liability from added street frontage.

4. How Corner Lots Impact Resale Value

Resale value for a corner lot home depends on the buyer pool in your area. Some buyers love the extra land and prestige, while others prefer secluded, interior lots for peace and privacy.

In general:

• In urban or suburban markets, corner lots with great curb appeal can sell at a premium.
• In high-traffic areas, the noise and lack of privacy might reduce interest or pricing.

If resale value is important to you, consult a local real estate agent to assess how corner lots are performing in your neighborhood.

5. Corner Lot Tips for Buyers

If you're considering buying a corner lot, here are a few smart tips:

• Visit at Different Times of Day: Pay attention to street noise, lighting, and foot traffic during both day and night.
• Review Zoning and Setbacks: Corner lots may be subject to stricter building codes, so check with your city about zoning and fencing regulations.
• Ask About Snow Removal and Landscaping Responsibilities: Some cities require homeowners to maintain longer stretches of sidewalk or city green space.
• Consider Fencing and Landscaping for Privacy: If privacy is a concern, budget for hedges, fencing, or trees to create a more secluded atmosphere.

6. Is a Corner Lot Right for You?

Ultimately, the decision depends on your lifestyle, preferences, and goals. If you value space, design flexibility, and standout curb appeal, a corner lot could be an ideal choice. However, if privacy and low maintenance are your top priorities, you may want to stick to an interior lot.

Before you make the leap, weigh the pros and cons carefully, walk the neighborhood, and get insights from a real estate professional who understands the local market dynamics.

Closing Insights

Corner lots aren’t for everyone, but they offer a unique opportunity for buyers who know how to leverage their potential. From extra yard space to increased visibility, these properties bring both rewards and responsibilities. Do your research, think about your long-term goals, and you’ll be better prepared to decide whether a corner lot is the right fit for your next home.