Not all of Canada’s housing markets are moving in tandem this year
Canada’s northern territories are experiencing contrasting fortunes in their housing markets, with Yukon posting gains while the Northwest Territories faces significant price declines, according to July 2025 data from the Canadian Real Estate Association (CREA).
Yukon market climbs
The Yukon Territory recorded a composite home price of $592,276 in July 2025, representing a 4.45% increase compared to the same period last year. Month over month, prices rose 1.35% from June’s $584,374.
The territory’s real estate performance reflects broader economic stability in the region, with steady demand supporting modest but consistent price appreciation throughout 2025.
Northwest Territories face sharp decline
In stark contrast, the Northwest Territories experienced a substantial 9.83% year-over-year price drop, with the composite home price falling to $519,661 in July 2025. This represents a 2.30% decline from the previous month’s $531,869.
The Northwest Territories’ housing market challenges mirror broader economic pressures affecting resource-dependent regions across northern Canada.
National context
These territorial market conditions unfold against a backdrop of mixed performance across Canada’s housing sector. The national composite home price decreased 3.41% year-over-year to $693,300 in July 2025, with most provinces experiencing varied degrees of price adjustment.
Quebec led provincial gains with a 9.48% year-over-year increase, while Ontario saw the steepest decline at 6.88%. Saskatchewan and Newfoundland and Labrador also posted strong growth at 8.09% and 11.28%, respectively.
Market dynamics
CREA reported a national sales-to-new-listings ratio of 52% for July, indicating balanced market conditions. Home sales rose 3.8% month-over-month, marking the fourth consecutive monthly gain.
Housing inventory across Canada reached 202,500 units, representing a 10.1% year-over-year increase, while new listings remained relatively flat with just a 0.1% monthly gain.
The territorial markets’ performance highlights the unique economic factors affecting Canada’s northern regions, where resource sector activity, government employment, and population dynamics create distinct housing demand patterns compared to southern urban centres.
Market projections
In July, CREA forecast the national average home price would rise 3% from 2025 to $697,929 in 2026.
A prolonged housing recovery is likely tied to multiple rate cuts, presumably starting in late 2025 and into 2026, according to industry analysts. However, without policy movement, housing prices and sales may remain weak through 2026, risking further declines, especially as mortgage renewals intensify.
Economists expect stronger growth in Canadian home sales and average home prices in 2026, backed by an improving economy, reduced uncertainty, and a modest downdraft in yields from their current levels, though territorial markets may experience different trajectories based on local economic conditions.
