Housing values drop in April as trade tensions and high rates deter buyers across the country
Canada’s housing market continued to soften in April, with home prices declining for a fourth consecutive month, according to the latest Teranet–National Bank House Price Index.
The national composite index dropped 1.5% month over month, as economic uncertainty and the ongoing US trade dispute continued to erode buyer confidence and stall the resale market. The report from the National Bank of Canada noted that house prices have now fallen by 2.4% since December 2024.
Both property types have been affected: condominium values have declined 2.7% since December, while single-family homes have dropped 2.1%. The market downturn is also becoming more widespread, with 68% of monitored cities experiencing monthly price decreases in April, up from 61% in March.
Outside Ontario, the share of markets in decline surged to 67% from 40% just one month prior. Ontario itself remains the most significantly impacted region, with 75% of its covered markets down 10% or more from their peak levels. In contrast, just 27% of other Canadian markets have seen similar declines.
“It should be noted that the weakness in Ontario’s real estate market remains significant, with 75% of the markets covered experiencing a decline of 10% or more from their all-time highs, compared to only 27% elsewhere in the country,” the report stated.
The decline in home prices is accelerating in Ontario’s three largest markets. Toronto saw prices fall 2.7% in April, more than double the 1.3% decline recorded in March. Hamilton prices slid 3.9%, compared to 0.8% in March, while Ottawa-Gatineau registered a 1.0% drop after a 0.5% decline the previous month.
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The report emphasized that broader macroeconomic headwinds continue to weigh on market sentiment, including elevated long-term interest rates and moderate population growth. As a result, the outlook for Canadian home prices remains bearish.
“In the context of ongoing economic uncertainty, moderate population growth and the risk that long-term interest rates will remain higher for longer than expected, home prices are likely to remain under pressure in the coming months,” the report read.
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