The Canadian housing market closed the book on 2025 with a muted finish, according to the latest data from the Canadian Real Estate Association (CREA). The national association reported that the year concluded "quietly," marking an overall decline in residential property transactions across the country.
A Year of Fluctuating Momentum
Realtors recorded a total of 470,314 units sold throughout 2025. This figure represents a decrease of 1.9 per cent compared to the sales volume in 2024. CREA's market report, released on Thursday, January 15, 2026, characterized the year's trajectory. It noted an initial withdrawal of buyers in the first quarter, influenced by economic factors, which was followed by a mid-year rally in sales activity before stalling again as the year ended.
The final month of the year underscored this cooling trend. On a seasonally adjusted basis, national home sales fell by 2.7 per cent in December. Compared to December of the previous year, the decline was even more pronounced at 4.5 per cent.
Price Trends and Regional Slowdowns
CREA's Senior Economist, Shaun Cathcart, commented on the December results. He indicated that the month-over-month drop did not stem from a single, nationwide cause but was rather the result of simultaneous slowdowns in several major markets. "There doesn’t appear to have been much rhyme or reason to the month-over-month decline in home sales in December, which was simply the result of coincident but seemingly unrelated slowdowns in Vancouver, Calgary, Edmonton, and Montreal," Cathcart stated in a release.
On the pricing front, the non-seasonally adjusted National Composite MLS® Home Price Index (HPI) was down four per cent year-over-year. This decline was not uniform across all housing types. The report highlighted that price drops were more significant for condo apartments and townhomes, while one- and two-storey detached homes saw smaller decreases.
The national average home price, which is not seasonally adjusted, was reported at $673,335 in December 2025. CREA described this figure as being "virtually unchanged" from the average price recorded in December 2024.
Market Implications and Looking Ahead
The 2025 data paints a picture of a Canadian real estate market in a period of adjustment and consolidation. The slight annual sales decline, coupled with a softening in price growth for certain property segments, suggests a shift from the frenetic pace seen in previous years. The report's description of a year that started with buyer hesitation, experienced a summer rebound, and then faded quietly points to a market sensitive to economic policy and consumer confidence.
This cooling-off phase provides a different landscape for both buyers and sellers entering 2026. While the average price remained stable at year's end, the underlying segmentation in the HPI indicates varying demand pressures. The performance of major urban centers like Vancouver and Montreal will continue to be critical bellwethers for the national market's direction in the coming months.
