A wave of economic uncertainty has significantly cooled buyer enthusiasm in Canada's condominium market throughout 2025, according to a comprehensive new analysis from REMAX Canada. The report points to persistent worries over job security and the cost of living as key factors keeping potential purchasers on the sidelines, even as prices have softened and selection has grown.
Market Metrics Show Widespread Softening
The REMAX Canada 2025 Canadian Condominium Report, which examined trends from January 1 to October 31, 2025, compared to the same period in 2024, covered seven major markets: Vancouver, Fraser Valley, Calgary, Edmonton, Toronto, Ottawa, and Halifax. The findings were consistent: every single market experienced a decline in resale activity. Condominium values largely held steady or saw modest decreases, but failed to stimulate significant demand.
The Greater Toronto Area (GTA) exemplified this trend. The report found that condo sales in the GTA dropped by 11.9% compared to the previous year. Accompanying this sales slump was a 5.1% softening in overall condo values in the region.
Broader Economic Pressures Outweigh Rate Cuts
Don Kottick, President of REMAX Canada, emphasized that affordability pressures are paramount. "Affordability and cost of living pressures weighed heavily on homebuyers nationwide," Kottick stated. He noted that even two consecutive cuts to the overnight lending rate in recent months have not been enough to shift consumer behavior meaningfully.
"It’s clear broader issues including job security and economic uncertainty continue to undermine consumer confidence levels," Kottick added. This sentiment of caution has permeated the market, overshadowing the positive signal of lower borrowing costs.
The development side of the market also faced headwinds. A sharp pullback in investor demand earlier in the year made many new projects unfeasible, leading to a wave of cancellations, delays, and a notable decline in new construction starts. Persistent challenges like high construction costs, labour shortages, and difficult financing conditions have further squeezed the market, particularly in high-cost cities like Toronto and Vancouver.
A Glimmer of Optimism for 2026 Buyers
Despite the sobering assessment, the report identifies a potential silver lining for well-prepared buyers in the coming year. Tim Syrianos, principal broker and owner of REMAX Ultimate Realty Inc., suggests the current climate may present a unique entry point. "With the interest rate issue behind us, and at certain price points, is there not a better opportunity to enter into the market than right now?" he asks, pointing out that resale condos in some parts of the GTA are now listed from as low as $399,000.
Looking ahead to 2026, Syrianos predicts that another anticipated quarter-point drop in interest rates could act as a catalyst. "It could be the trigger that turns demand for condos from a drip into a flow," he said. The report suggests that for financially ready first-time buyers or those looking to upsize, the first half of 2026 may offer a rare chance to purchase at a lower price point before inventory begins to tighten again.
"We expect this window to remain open for roughly six months," the report concludes, framing the current slowdown not just as a challenge, but as a temporary opportunity within a longer-term cycle.
