The Teranet-National Bank composite index decreased by 0.1% for a second consecutive month in February. This decline in prices comes at a time when the resale housing market has slowed sharply in recent months, due in part to uncertainty surrounding trade tensions with the United States. Consumer confidence is in free fall and the most recent data on their willingness to make major purchases (such as a property) indicate that the slowdown could continue. On a year-on-year basis, the increase in home prices is now limited to just 2.9%, with notable regional differences. Indeed, it is interesting to note that the highest price increases have been observed in the most affordable markets in the country, while the most expensive markets are at the bottom of the list. Unless the current trade war is resolved quickly, home prices are expected to remain under pressure, particularly in the least affordable markets. Although the Bank of Canada’s recent interest rate cuts will provide some support to the real estate market, the inflation situation makes additional support increasingly uncertain, at least in the short term. This, combined with a significant moderation in population growth in a context of a less vigorous labour market than previously thought, represents a headwind for real estate asset prices in Canada.

Month-Over-Month

The Teranet-National Bank Composite House Price Index™, which covers the country’s eleven largest CMAs, declined by 0.1% for a second consecutive month in February after seasonal adjustment. In February, three of the 11 CMAs included in the index experienced declines, namely Victoria (-1.4%), Vancouver (-0.9%) and Toronto (-0.5%). Conversely, prices increased in Halifax (+2.8%), Winnipeg (+0.9%), Montreal (+0.9%), Edmonton (+0.9%), Calgary (+0.8%), Quebec City (+0.6%), Ottawa-Gatineau (+0.3%) and Hamilton (+0.2%). In addition, a decrease was observed in seven of the 20 CMAs not included in the composite index for which data were available in February. The largest monthly decreases were observed in Kingston (-2.8%), Abbotsford-Mission (-1.8%) and Thunder Bay (-1.3%). Conversely, the largest increases occurred in Saint John (+9.8%), Moncton (+8.3%) and Sherbrooke (+6.7% after -6.0% the previous month).

Before seasonal adjustments, the Teranet-National Bank Composite House Price Index™ decreased by 0.1% from January to February.

Year-Over-Year

The Teranet-National Bank Composite Home Price Index™ increased by 2.9% from February 2024 to February 2025, a slower growth than the 3.4% observed the previous month. Increases were observed in nine of the 11 cities forming the composite index in February, with Toronto (-0.3%) and Victoria (-0.8%) being the exceptions. Quebec City led the way with a 14.0% year-over-year price increase, followed by Halifax with a 10.0% gain and Montreal with 8.2% growth. Among the 20 other CMAs not included in the composite index, annual gains were observed in 16 of them. Among the markets on the rise, the strongest growth was recorded in Trois-Rivières (+21.9%), Saint John (+14.5%) and Moncton (+12.8%). Conversely, the largest declines occurred in Brantford (-1.1%), Barrie (-0.7%) and Kitchener (-0.7%)

Click here to view the full report.

Teranet-National Bank House Price Index Decreases in February