Buyer sentiment is still subdued across the country, a new report has found
Canada’s condominium market remained sluggish throughout 2025 as inventory continued to saturate major cities, despite lower pricing and expanded product selection, according to a report released by RE/MAX Canada.
The 2025 Canadian Condominium Report examined seven major markets from January 1 to October 31, comparing trends with the same period in 2024. All markets recorded lower resale activity, with condominium values remaining relatively stable or posting modest declines.
Sales decline across the board
Calgary saw the steepest drop in sales at 28.5%, followed by Fraser Valley at 20.6% and the Greater Toronto Area at 11.9%. Greater Vancouver sales fell 11%, while Halifax Regional Municipality declined 8.8%. The Greater Edmonton Area and Ottawa posted smaller decreases of 6% and 2.9%, respectively.
“Affordability and cost-of-living pressures weighed heavily on homebuyers nationwide,” said Don Kottick, president of RE/MAX Canada. “However, with two consecutive cuts to overnight rates in recent months failing to meaningfully shift consumer behaviour, it’s clear broader issues, including job security and economic uncertainty, continue to undermine consumer confidence levels.”
Limited price growth
Only three markets posted higher average prices year over year. Greater Edmonton led with a 6.3% increase to $212,672, followed by Halifax with a 0.3% rise to $487,719 and Calgary with a 0.2% gain to $348,503. Meanwhile, values softened in the Greater Toronto Area by 5.1%, in Greater Vancouver by 5.8% and in the Fraser Valley by 7.4%.
Construction slowdown
Condominium apartment starts declined across all markets except Edmonton and Ottawa, with the sharpest pullback in the Greater Toronto Area, according to Canada Mortgage and Housing Corporation’s (CMHC) Fall 2025 Housing Report. A sharp reduction in investor demand earlier in 2025 reduced project feasibility, contributing to cancellations, delays, and a notable decline in new starts.
Pre-construction condominium sales have slowed considerably from peak levels in 2021–2022. Persistent financing challenges, elevated construction costs, labour shortages, and a widening affordability gap further eroded achievability in 2025, particularly in Toronto and Vancouver.
Rentals gain ground
Lower upfront costs and reduced maintenance obligations strengthened the rental value proposition during the period of economic uncertainty. More condominium projects shifted to purpose-built rentals, causing vacancy rates to edge higher in several markets and rents to stabilize—particularly in Halifax and Calgary.
“While buyer interest was and is piqued this year, overall carrying cost—in terms of not only mortgage payments but maintenance fees—made a greater case for renting until the market regains its footing,” Kottick said.
The report anticipates 2026 will be a transition year, with inventory slowly absorbed before giving way to healthier conditions in 2027.
“We anticipate 2026 will be a year of transition, as inventory is slowly absorbed, giving way to healthier conditions in 2027, alongside broader economic recovery,” noted Kottick. “Economic stability, after all, is the bellwether of consumer confidence with the latter the essential catalyst that drives recovery.”
