EN 
Winter’s grip extended deeper into Canada’s housing market in February, with both buyers and sellers pulling back in tandem.
Resales slipped another 1.3% nationwide from the prior month seasonally adjusted, while new listings fell 3.9%. Supply and demand tightened marginally as a result with the sales-to-new listings ratio up to 48% from 46% in January—though the situation still varies considerably across the country.
Markets in Ontario and British Columbia continue to stand out for the wide selection of homes available to buyers. Offerings are much slimmer in most other regions.
Overall, the trend for home values remains one of depreciation. The national composite MLS Home Price Index fell for the 15th consecutive month in February, inching 0.6% lower from January (seasonally adjusted) and down 4.8% from a year ago. This marks nearly two years of year-over-year price erosion.
The index has declined 20% since its peak in early-2022—yet this has reversed only about half the spike in the two years prior to the peak.
Inventory abundance persists in key markets
Fewer sellers entered the market in February compared to January. Still, persistently weak demand and abundant inventory in Ontario and B.C. keep prices pinned down in both provinces and nationwide.
Inventory remains at a six-year high equivalent of five months of sales in Canada despite February’s drop in new listings. This is likely to maintain downward pressure on prices in the coming months, especially in Ontario and B.C.
Other markets see property values decline
Price softness has spread to more areas in recent months.
Edmonton (-2.1%) joined the downward camp this year, becoming the latest major market to see the composite MLS Home Price Index flip negative year-over-year. It joins Victoria (-0.7%), Okanagan Valley (-1%), and Saint John (-3.6%) where annual price changes had fallen negative recently.
Toronto (-7.9%) and Vancouver (-6.8%) continue to experience the steepest declines, where stretched affordability and stalled population growth leave little room for rebound. Toronto and Vancouver recorded the slowest population growth in 2025 among Canada’s six largest metropolitan areas and are likely to see continued weakness this year as international arrivals dwindle further.
Neighbouring regions of Mississauga (-7.5%), Hamilton-Burlington (-7.7%), the Niagara Region (-7.6%), and the Fraser Valley (-7.7%) are tracking in line with Toronto and Vancouver’s deterioration.
Montreal is the only major market to see prices still climbing—up 5.9% from a year ago, though momentum could fade if resales continue softening.
Prairie markets Saskatoon (4.8%) and Regina (6.6%) continue to demonstrate price resilience as well with resales still well above pre-pandemic levels. Similarly, activity out east has been relatively sustained—keeping prices up in most markets aside from Halifax & Dartmouth and Saint John.
Spring may offer relief but not everywhere
Nicer weather should spur activity in coming months. However, confidence must rebuild for Canada’s housing market to get on a stronger recovery track.
This will be tricky given the uncertain economic environment weighing on many.
We expect a gradual and uneven process with Ontario and B.C. likely on a longer journey than other regions as they contend with higher inventory, stretched affordability, and stiffer demographic headwinds.
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About the Author:
Rachel Battaglia is an economist at RBC, providing forecasts for the Canadian provincial economies and analyzing key trends in housing and consumer spending.
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