Home Prices Continue to Fall in June

The Teranet-National Bank composite index fell 0.5% from May to June, marking the fifth consecutive monthly decline. As a result, prices have fallen 4.3% since January. This comes at a time when the resale market continues to be particularly weak, due in large part to the uncertainty surrounding the trade war with the United States. Although the number of transactions in the resale market has increased slightly over the past three months, market conditions have eased considerably across the country and now indicate a balanced market after being tighter than average. However, this reversal is mainly due to market conditions that are now strongly favourable to buyers in Ontario and British Columbia, which is causing prices to decline, particularly in these two provinces with persistent affordability challenges. In fact, 75% of markets (15 out of 20) in Ontario and British Columbia recorded a decline during the month, compared to 36% in other provinces (4 out of 11). As a result, prices are down 6.7% year-over-year in Toronto and 4.1% in Vancouver, highlighting the amplifying effect of affordability conditions in the current weak environment. Amid ongoing economic uncertainty, moderate population growth and the risk of continued high long-term interest rates, home prices are expected to remain under pressure in the coming months, even if the resale market regains some momentum. The accumulation of homes for sale will continue to weigh on prices in the coming months.

MONTH-OVER-MONTH

The Teranet-National Bank Composite House Price Index™, which covers the country’s eleven largest CMAs, fell 0.5% from May to June, marking the fifth consecutive monthly decline. In June, six of the 11 CMAs included in the index saw declines: Ottawa-Gatineau (-1.2%), Calgary (-1.0%), Hamilton (-0.9%), Toronto (-0.8%), Vancouver (-0.8%), and Victoria (-0.5%). Conversely, prices rose in Halifax (+2.0%), Winnipeg (+1.6%), Edmonton (+1.6%), Quebec City (+0.5%), and Montreal (+0.3%). Meanwhile, declines were observed in 13 of the 20 CMAs not included in the composite index for which data are available for June. The largest monthly decreases were observed in Lethbridge (-2.6% after +4.0% the previous month), Sherbrooke (-2.4%), and Thunder Bay (-2.2%). Conversely, the largest increases were in Abbotsford-Mission (+3.3% after -2.3% the previous month) and Moncton (+1.8%).

Before seasonal adjustments, the Teranet-National Bank Composite House Price Index™ rose 0.3% from May to June.

YEAR-OVER-YEAR

The Teranet-National Bank Composite Home Price Index™ declined by 1.8% from June 2024 to June 2025, a larger decrease than the one observed the previous month. However, increases were observed in eight of the 11 cities that make up the composite index in June. Quebec City led the way with a 16.4% increase over 12 months, followed by Montreal with an 8.1% gain and Winnipeg with 5.6% growth. In contrast, declines were observed in Toronto (-6.7%), Vancouver (-4.1%), and Hamilton (-3.2%). Regarding the 20 other CMAs not included in the composite index, annual declines were observed in nine of them. Among the declining markets, the sharpest declines were recorded in Barrie (-5.4%), Oshawa (-4.7%), and Brantford (-4.2%). Conversely, the largest increases were in Saint John (+15.0%), Trois-Rivières (+13.0%), and Sherbrooke (+8.4%).

Teranet-National Bank House Price Index Continues to Decline in June