Canada’s housing market is showing faint signs of life again — but the long-awaited rebound in prices still isn’t here.

According to a new Royal LePage survey, national home prices were virtually unchanged in the third quarter of 2025, rising just 0.1% year-over-year to an average of $816,500. That’s actually a 1.2% drop compared to the previous quarter.

Even with slightly better affordability and stable economic conditions, consumer confidence remains weak, said Royal LePage CEO Phil Soper. Many potential buyers are still holding back, waiting for either a price dip or clearer signs of market stability.

“Many buyers remain hesitant – some worried about broader economic uncertainty, others waiting to see if prices dip a little further before stepping in,” Soper explained.

The Canadian Real Estate Association (CREA) echoed similar findings, upgrading its 2025 forecast to predict home sales will decline just 1.1% — better than its earlier projection of a 3% drop. Still, CREA expects the average home price to fall 1.4% next year.

In the Greater Toronto Area, the cooling trend is particularly noticeable. Home prices dropped 3.5% year-over-year in Q3, and new listings are outpacing sales. Properties are taking much longer to sell — an average of two months on the market, compared to mere days during the pandemic boom.

Condos are feeling the pain most: their median price has fallen 7.4% since last year, while detached homes are down 1.2%.

Overall, home prices across Canada are down 5% from their pandemic peak, driven mostly by declines in Toronto and Vancouver, where values have plunged about 12%.

Royal LePage now expects only a 1% annual increase in home prices by the end of 2025 — a modest recovery that suggests Canada’s real estate market may be stuck in a wait-and-see phase for a while longer.