Canadian Housing Market Shows Divergent Trends as Some Cities Defy National Decline
A recent analysis of Canada's housing market reveals a complex landscape where certain urban centers experienced notable price growth in late 2025, even as the national average trended downward. According to a comprehensive report from Wahi, a prominent online housing market portal, the aggregate housing prices across Canada decreased by one percent in December 2025 compared to the same period the previous year.
National Context and Historical Perspective
This December decline marks the second instance of year-over-year price reduction since mid-2023, with November 2025 having recorded a similar one percent drop. The persistent downward pressure at the national level highlights broader economic and market dynamics affecting the Canadian real estate sector.
However, beneath this overarching trend lies significant regional variation, with several cities demonstrating resilience and even growth in their housing markets. The Wahi report, which utilizes the RPS-Wahi House Price Index for its analysis, provides detailed insights into these contrasting performances.
Standout Performers in Price Appreciation
Quebec City emerged as the clear leader in housing price growth, with its index surging an impressive twelve percent year over year. This substantial increase reflects strong local demand and market conditions that diverged sharply from the national pattern.
Other cities that posted significant gains include:
- Regina with ten percent growth
- Winnipeg at nine percent
- Montreal with eight percent appreciation
These markets demonstrated particular strength throughout 2025, though the report notes that many experienced month-over-month declines in both sales and prices as the year concluded.
Moderate Growth in Key Urban Centers
Calgary's housing market showed steady performance with a two percent increase in its price index, placing it alongside Halifax and Ottawa in experiencing modest but positive growth. This consistent performance suggests relative stability in these markets despite broader national headwinds.
Edmonton and Saskatoon also recorded respectable gains, each seeing four percent price growth according to the Wahi analysis. These figures indicate that prairie and western Canadian markets maintained momentum even as larger metropolitan areas faced challenges.
Significant Declines in Major Markets
In stark contrast to the growth seen elsewhere, Toronto's housing market experienced the most substantial decline among Canadian cities, with its RPS-Wahi index falling six percent year over year. This significant drop reflects particular pressures in Canada's largest urban center.
Other cities facing notable price decreases include:
- Hamilton and Vancouver both down four percent
- Victoria declining three percent
The report emphasizes that despite only four major markets showing declines on the price index, their substantial weight in the national market—particularly Toronto and Vancouver—drove the overall downward trend. The condominium sub-markets in these cities continue to face particular challenges with elevated supply and diminishing demand.
Market Dynamics and Future Implications
The divergent performance across Canadian cities underscores the importance of local factors in real estate markets. While national trends provide important context, regional economic conditions, housing supply, and demographic patterns create distinct environments that can either mitigate or amplify broader market movements.
The Wahi report's findings suggest that 2025 ended with a fragmented housing landscape, where some cities successfully navigated economic uncertainties while others faced more pronounced adjustments. This analysis provides valuable insights for prospective buyers, sellers, and policymakers as they assess market conditions heading into 2026.
