Toronto and Vancouver Housing Markets Continue to Slouch

Summary

Canada’s two largest housing markets, Toronto and Vancouver, continue to struggle with weak sales activity despite shifting economic conditions. Real estate associations characterize 2025 as a year that will be remembered for all the wrong reasons if you were trying to sell a home. While population growth and long-term demand narratives remain, the immediate reality is a market that has cooled significantly, with buyers and sellers finding less common ground than in the boom years.

Toronto is seeing sales figures not witnessed since the early 2000s. After a peak of more than 127,000 transactions in 2021, sales fell to roughly 62,000 last year, according to the Toronto Regional Real Estate Board. The decline is particularly striking given how much the region has grown over the past 25 years. Individual sellers are feeling the strain: one homeowner north of Toronto who bought in 2022, renovated, and listed in both 2024 and 2025 has yet to secure a sale, citing concerns about covering mortgage and living expenses.

Vancouver mirrors the slowdown, with a record number of homes listed for sale in 2025—levels not seen since the mid-1990s—yet sales remain at historic lows. Metro Vancouver residential sales bottomed out at about 23,800 last year, the lowest annual total in more than two decades. Even so, the region remains one of the country’s most expensive markets, often outpacing Toronto on price—a combination that can deter buyers even as more properties come to market.

A key paradox underpins both cities: borrowing costs and selling prices have generally trended lower across major market segments, yet sales volumes have continued to sag. That disconnect suggests that price and rate adjustments alone haven’t been enough to revive demand. For homeowners carrying significant debt and hoping to offload properties, the wait for a more active market has been longer and more uncertain than expected.

Looking ahead, some housing insiders expect the subdued pace to persist for at least the next six months as uncertainties around the broader economy and interest-rate trajectory continue. The question is whether 2026 brings enough clarity—and confidence—to spur a turnaround in transactions. Until then, both buyers and sellers may remain cautious, watching for signs of stabilization before making their next move.