Don’t miss out—join us online for REM’s monthly market breakdown on May 27 at 2 PM ET. REM, columnist Daniel Foch will analyze CREA’s latest stats, regional variations and what shifting sentiment means for Realtors—register here.

In a real estate market as diverse as Canada’s, national averages hide more information than they reveal. CREA’s April data confirms what many Realtors on the ground already know: Canada’s housing performance depends entirely on where you are.

In Ontario and British Columbia, prices are softening, listings are rising, and buyers are treading carefully. But in Alberta, Quebec, and across much of Atlantic Canada, the picture looks very different. Prices are more stable, demand has sustained, and available inventory is tight.

This does not seem to be a temporary fluctuation. It’s the result of deep-running forces, which include household indebtedness, migration patterns, policy decisions, affordability gaps, and economic resilience. 

To understand where Canada’s housing market is heading, you need to stop looking at the average and start looking at the map.

Softness turns into stagnation in B.C. and Ontario

Ontario and B.C. are, quite simply, the most expensive places to own a home. When homeownership becomes more expensive, people take larger and larger mortgages in order to afford those homes. This results in outsized debt-to-income ratios in these provinces, which just so happen to be (not coincidentally) the areas that are most impacted as interest rates rise and employment levels fall. 

Canadian household credit debt to disposable income

Home prices continue to drift down

The traditional powerhouses of Canadian real estate are no longer propping up the national market. Instead, they’re pulling it downward.

According to CREA’s April 2025 report:

• Ontario prices fell 4.8 per cent year-over-year
• B.C. prices declined 5.8 per cent year-over-year
• The national average price dropped 3.9 per cent year-over-year
  
  

These don’t seem to be panic-driven drops. But they are persistent and increasingly hard to ignore. The market is retreating quietly and cautiously.

Buyer confidence has not recovered

While interest rates have been stable lately, buyer psychology has not. CREA points to tariff-related economic uncertainty as a new factor keeping demand suppressed. In Ontario and B.C., buyers are no longer sidelined by cost alone, but by caution (I talked about this caution in my previous article for GTA buyers). They are choosing to wait. And when confidence dries up, price erosion tends to follow.

Atlantic Canada and the Prairies: Quiet strength in the margins

Price growth in secondary markets

The picture is entirely different elsewhere. As of April 2025, year-over-year price growth in these regions was:

• Prince Edward Island: +10.9 per cent
• Quebec: +8.5 per cent
• Newfoundland & Labrador: +7.2 per cent
• Alberta: +5.6 per cent
• Saskatchewan: +6.0 per cent
• Manitoba: +5.5 per cent

These numbers reflect the persistence of affordability, demand, and low inventory. Unlike the major urban centres, these markets did not experience the same frothy appreciation during 2020–2022, and therefore have less air to come out of the balloon.

Inventory still tight outside the big two

According to CREA, the national sales-to-new listings ratio rose slightly to 46.8 per cent, just below the long-term average of 54.9 per cent. There were 5.1 months of inventory across Canada, a level broadly consistent with a balanced market.

The problem is that these national figures hide sharp regional contrasts.

Active listings are up 14.3 per cent year-over-year, reaching 183,000 homes. However, the majority of that inventory surge is concentrated in Ontario and B.C., where demand has softened and homes are sitting longer. In contrast, inventory in provinces like Alberta, Quebec and much of Atlantic Canada remains tight, fueling competitive conditions and keeping upward pressure on prices.

In many of these tighter markets, homes are still moving briskly, just without the headline coverage. The national balance masks what is, in reality, a tale of buyers’ markets in some regions and sellers’ markets in others.

What’s driving Canada’s two-speed housing market?

Ontario and British Columbia: Demand drains and economic drag

According to BMO Economics, Ontario saw a net loss of over 32,000 people to other provinces in 2024, the largest outflow on record. B.C. followed with a loss of almost 10,000. While migration isn’t the sole factor, such a significant population shift likely contributed to softer housing demand in two of the country’s most expensive and traditionally high-growth markets.

Confidence has also taken a hit. Ontario’s economy is exposed to U.S. trade tensions, including tariffs on Canadian steel and manufacturing. In B.C., stagnant wage growth, high debt loads and fading investor interest are compounding buyer reluctance.

Alberta, Quebec, and other provinces: Growth anchored in migration and affordability

In contrast, Alberta gained almost 53,000 interprovincial migrants in 2024, the highest in Canada, while Quebec and Atlantic provinces also saw steady population increases, much of it coming from Ontario and B.C. There is a good chance these inflows have influenced housing demand.

Also, these markets remain relatively affordable, allowing buyers to absorb interest rates more easily. With lower entry prices, demand remains active, hence prices are rising across much of the Prairies and Atlantic Canada.

What Realtors should be telling their buyers and sellers

For Buyers: Conditions vary sharply by region

If you’re house hunting in Ontario or B.C., you’re entering a market that’s cooled meaningfully. Prices have fallen year-over-year. Inventory is building, competition is thin and mortgage renewals are putting pressure on sellers. This is a moment for buyers to negotiate firmly, especially for properties sitting on the market.

But in provinces like Alberta, Quebec and PEI, the dynamic flips. Prices are still climbing, and sales-to-new listings ratios remain in seller’s market territory. With affordability still intact and an expected rise in demand, waiting could mean paying more later.

For sellers: Know your local conditions

In Ontario and B.C., overpricing is a fast track to stale listings. Presentation, pricing and patience are all critical. In more active markets, sellers still hold negotiating power, but should be prepared for a more discerning, rate-sensitive buyer pool than in past years.

But even in Canada’s strongest markets, caution is warranted. Alberta, in particular, has become the new darling of interprovincial capital, with investment flowing in from Ontario and B.C. buyers seeking better affordability and rental yields. Yet as this momentum builds, so does the potential for overheating. Price-to-income and debt-to-income ratios in Calgary and Edmonton are beginning to mirror those of the very provinces investors and homebuyers are fleeing. If fundamentals erode under the weight of speculative demand, Alberta could end up retracing the same cycle of boom, overleverage and correction. It’s a reminder that no market is immune—and that affordability can be fleeting when too much capital chases too few homes.

The bottom line: One country, two markets

This is no longer about a hot or cold market. It’s about entirely different climates. In some regions, the challenge is absorbing demand. In others, it’s managing risk.

We’re watching a geographic divergence driven by economic fundamentals and shifting consumer psychology. It’s the start of something more permanent.

So the next time you hear a headline about “the Canadian housing market,” ask a simple question:

Which Canada are they talking about?

Because in 2025, understanding that distinction is the difference between making a good decision and making a risky one.

Daniel Foch

Daniel Foch is the Chief Real Estate Officer at Valery.ca, and Host of Canada’s #1 real estate podcast. As co-founder of The Habistat, the onboard data science platform for TRREB & Proptx, he helped the real estate industry to become more transparent, using real-time housing market data to inform decision making for key stakeholders. With over 15 years of experience in the real estate industry, Daniel has advised a broad spectrum of real estate market participants, from 3 levels of government to some of Canada’s largest developers.

Daniel is a trusted voice in the Canadian real estate market, regularly contributing to media outlets such as The Wall Street Journal, CBC, Bloomberg, and The Globe and Mail. His expertise and balanced insights have earned him a dedicated audience of over 100,000 real estate investors across multiple social media platforms, where he shares primary research and market analysis.