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In August 2025, Canada saw home prices rise by 0.4% compared to July, according to the Teranet–National Bank composite index — marking the first uptick in home prices after seven months of decline. The increase comes alongside a steady rise in resale market activity, which has been growing for five consecutive months.
Despite that monthly gain, home prices are still well below where they were at the end of 2024: specifically, the index remains 4.6% below its December 2024 level. Some of the hardest-hit markets are Toronto (–7.9%), Hamilton (–7.4%), and Ottawa–Gatineau (–1.5%), while in British Columbia, Vancouver and Victoria have dropped by 7.1% and 0.4% respectively. Markets with greater affordability challenges have tended to see steeper losses.
Looking ahead, uncertainty remains. The article notes that while the Bank of Canada has just cut its key interest rate by 25 basis points (to 2.5%) — its first cut since March — many risks still loom: moderating population growth, persistently high long-term interest rates, potential labour market weakness, and general economic uncertainty. Whether the positive momentum in prices will continue depends on how those factors evolve.
Read the full article on: REAL ESTATE MAGAZINE
