Canadian home prices continued to trend upward in April 2025, but at a more moderate pace compared to earlier in the year. The combination of affordability challenges and economic uncertainty driven by the ongoing trade war is taking an increasing toll on several key markets.
The April RPS House Price Index showed a 1.9% year-over-year increase, easing from a 3.1% rise in March. This marks the second consecutive month of slowing price growth and reflects changing conditions in key urban markets.
A National Slowdown With Sharp Regional Contrasts
This national price trend points to a noticeable slowdown across major markets including Toronto and Vancouver, where prices dipped in April. Insights from regional real estate boards suggest that the condo markets in these major cities remain weak, contributing to the broader softening in these areas.
Hamilton joined Toronto and Vancouver with a modest annual drop. In contrast, markets like Quebec City, Montreal, and Edmonton continued to see annual gains, though the pace of growth has moderated in several of these areas.
Quebec City and Montreal Lead the Country
Quebec City stood out with a 15.1% year-over-year increase in home values, well ahead of other major metros. Limited inventory and relative affordability have supported continued upward pressure on prices in Quebec’s capital. Montreal also recorded notable annual growth, maintaining its position among the stronger-performing markets in April.
Buyer Sentiment: Cautious Despite Improving Confidence
While consumer confidence has edged up ahead of the recent federal election, according to The Conference Board of Canada, many Canadians are proceeding with caution. Affordability remains a challenge, and while the Bank of Canada held its policy rate steady in April after months of cuts, some buyers may be waiting for more clarity before moving forward with a purchase.
Looking Ahead
As Canada moves through the spring real estate season, local market conditions remain diverse. Shifts in inventory, economic uncertainty, and evolving buyer sentiment are expected to influence market outcomes into the summer.
Methodology
Why do house price indexes differ? Each provider may use different data sources, geographic coverage, property type definitions, and methodology. While composite values may vary across providers, the overall trends are generally consistent. Learn more about the RPS HPI methodology.
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This article provides a summary of the key trends from the April 2025 RPS House Price Index. If you’d like the underlying data, sign up for the RPS HPI Public Release and receive the complimentary dataset each month, delivered directly to your inbox.
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Josh is a staff writer at RPS. He has been reporting on the national real estate market for 10 years, including for some of Canada’s largest newspapers and magazines.