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The Canadian housing market is experiencing a slowdown, with recent data indicating a 0.1% decrease in home prices from January to February, after seasonal adjustments, according to the Teranet–National Bank Composite National House Price Index. National Bank of Canada economist Darren King suggests this trend may persist, attributing the decline to a sharp slowdown in the resale housing market in recent months, partly due to uncertainty surrounding trade tensions with the United States.

​ This sentiment is echoed by other industry experts. BMO Senior Economist Robert Kavcic describes the housing market as being in a "prolonged period of consolidation," with expectations of modest sales and price gains in 2025, though still below the highs of 2022. Additionally, RBC Economics warns that potential U.S. tariffs pose significant risks to Canada's economy, casting a "dark shadow" over the housing market. Assistant Chief Economist Robert Hogue compares forecasting the housing outlook under these conditions to "putting a price on a home before an earthquake," highlighting the challenges in predicting market stability amid such uncertainties. ​

Despite these concerns, some forecasts remain cautiously optimistic. Royal LePage's Market Survey Forecast anticipates a 6% year-over-year increase in the average home price in Canada by the fourth quarter of 2025, reaching approximately $856,692. This projection is based on expectations of declining interest rates and new lending rules that could bring buyers back to the market. However, the overall consensus suggests that the housing market's trajectory will heavily depend on the resolution of trade tensions and the broader economic climate in the coming months.​

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