4 Cities Where Home Prices Are Actually Dropping in 2025 

Now that we are halfway through the year, are house prices dropping in the Canadian housing market in 2025? 

This has become a key question for many families across the country, particularly as mortgage rates gradually decline, stability returns to the Canadian real estate market, and concerns about the economy become widespread. 

According to Statistics Canada, the average five-year conventional mortgage lending rate is hovering around five percent. Should upside risks to the Canadian economy intensify, interest rates could edge lower, too, offering even more relief to the national mortgage market. 

Canadian Real Estate Association (CREA) data, meanwhile, show that benchmark home prices in Canada have declined nearly four percent from a year ago in June. In addition, the non-seasonally adjusted national average home prices were approximately $692,000, down more than one percent from June 2024. 

“At the national level, June was pretty close to a carbon copy of May, with sales up about 3% on a month-over-month basis and prices once again holding steady,” said Shaun Cathcart, the association’s senior economist. “It’s another month of data suggesting the anticipated rebound in Canadian housing markets may have only been delayed by a few months, following a chaotic start to the year; although with the latest 35% tariff threat, we’re not out of the woods yet.” 

But what about certain pockets of the country? While some cities are witnessing significant growth, other major urban centres and small towns are experiencing modest declines in home prices. 

Here is a look at jurisdictions where house prices are dropping. 

4 Cities Where Home Prices Are Actually Dropping in 2025 

Here are four cities where house prices are dropping so far this year: 

Fraser Valley, British Columbia 

Are house prices going down in BC? On a provincial basis, the average residential price in the British Columbia housing market fell by more than four percent year over year in June to $954,065.  

The Fraser Valley has been one area of the Western province that has driven a share of the modest drop in home prices in B.C. 

According to the Fraser Valley Real Estate Board, the composite benchmark price tumbled more than one percent in June to $951,500. Here is a breakdown of prices for the different residential properties: 

• Single Family Detached: 4.6 percent year-over-year decline to $1,458,600. 

• Townhome: 3.1 percent year-over-year drop to $824,400. 

• Apartments: 4.5 percent year-over-year decrease to $526,500. 

“For buyers who can tolerate the current economic uncertainty, this market offers some very real opportunities,” said Tore Jacobsen, Chair of the Fraser Valley Real Estate Board, in a statement. “With more homes to choose from and softening prices, it’s a uniquely favourable time to make a move in the Fraser Valley, particularly for first-time buyers.”  

Vancouver, British Columbia 

While market analysts say that the Vancouver real estate market could be turning the corner and generating some momentum after first-half turbulence, home prices in one Canada’s largest cities are sliding. 

According to new data from the Greater Vancouver Realtors, the composite benchmark price for all residential properties in Metro Vancouver is currently $1,173,100, down nearly three percent from June 2024. 

“As home sales regain their footing, inventory levels aren’t building as quickly as we’ve seen lately,” said Andrew Lis, the director of economics and data analytics at Greater Vancouver Realtors, in a statement. 

“Most market segments remain in balanced market conditions, which has generally kept prices trending sideways since the start of the year. With over 17,000 listings on the market right now, and with mortgage rates down around two percent since last summer, buyers are enjoying some of the most favourable conditions seen in years.” 

Here is a breakdown of residential property categories: 

• Detached Homes: 3.2 percent drop from June 2024 to $1,994.500. 

• Attached Homes: Three percent slide from June 2024 to $1,103.900. 

• Apartments: 3.2 percent slump to $748,400. 

Hamilton-Burlington, Ontario 

As more housing markets in Ontario and across the country are in better balance, and many prospective homebuyers are taking a wait-and-see approach to purchasing a home, sales activity has been subdued in various places, which has put downward pressure on home prices. 

Case in point, Hamilton-Burlington, Ontario. 

New data from the Cornerstone Association of Realtors shows that the unadjusted benchmark price was $776,300 in June, down close to nine percent from the same time a year ago.  

Prices have also been tumbling for all residential categories: 

• Detached: 3.3 percent drop from a year ago to $1,000,949. 

• Semi-Detached: -0.5 percent dip from June 2024 to $763,625. 

• Townhome: 3.9 percent slide from June 2024 to $716,000. 

• Apartment: 11.2 percent decline from last year to $471,000. 

• Mobile: 13.6 percent year-over-year plunge to $24,000. 

Ultimately, this is providing an exceptional opportunity for households, says Nicolas von Bredow, the association’s spokesperson for the Hamilton-Burlington market area. 

“While global market uncertainty has some buyers waiting on the sidelines, growing inventory levels and softer prices present a unique window of opportunity for those with a stable income and savings who are ready to leverage today’s market conditions to their advantage,” von Bredow said in a statement. 

Toronto, Ontario 

Let’s be honest: Toronto is unlikely to be the cheapest place to buy a house. That said, this is perhaps one of the best opportunities to get your foot in the door of the Toronto real estate market amid a blend of falling home prices and lower mortgage rates. 

Suffice it to say, homeownership housing affordability continued to improve in June, with average selling prices and borrowing costs lower than a year ago, according to the Toronto Regional Real Estate Board. 

The composite benchmark price fell 5.5 percent year-over-year in June, and the average selling price tumbled more than five percent year-over-year to $1,101,691. Additionally, here is a breakdown of the average price for residential properties in the city: 

• Detached: 6.5 percent decrease from last year to $1,641,868. 

• Semi-Detached: 6 percent decline from June 2024 to $1,278,434. 

• Townhome: 5.3 percent year-over-year fall to $846,121. 

• Condo: 4.3 percent annualized decrease to $731,232. 

“The GTA housing market continued to show signs of recovery in June. With more listings available, buyers are taking advantage of increased choice and negotiating discounts off asking prices. Combined with lower borrowing costs compared to a year ago, homeownership is becoming a more attainable goal for many households in 2025,” said Toronto Regional Real Estate (TRREB) President Elechia Barry-Sproule, in a statement. 

Housing Affordability in Canada 

The Canadian housing market in 2025 can be described as waiting. Many families are waiting for the U.S.-Canada trade situation to improve. Many households are waiting to see if the Bank of Canada will lower interest rates even further, which will bring down mortgage costs. Many prospective homebuyers will regularly turn to their favourite search engine and ask: Are house prices dropping? Conditions are finally favouring homebuyers, whether it will last a longer time remains to be seen.