For anyone thinking about purchasing a home in Canada from overseas, 2025 presents a mixture of challenges and opportunities. House prices are falling in many areas, while broader economic and political factors are creating uncertainty.
This may raise doubts, but for some, the timing could prove favourable.
There have been significant changes in house prices across Canada
House prices are falling in many cities
According to the latest Teranet-National Bank House Price Index, prices have declined for three months in a row. From February to March 2025, the national index fell by 0.4 percent. This means some cities are now seeing more affordable property values.
| City | Change (month-on-month) |
|---|---|
| Halifax | -1.9% |
| Toronto | -1.2% |
| Hamilton | -0.8% |
| Ottawa-Gatineau | -0.4% |
| Victoria | +2.2% |
| Winnipeg | +1.6% |
| Edmonton | +0.6% |
| Quebec City | +0.5% |
| Calgary | +0.4% |
| Montreal | +0.2% |
| Source: Teranet–National Bank House Price Index, March 2025 | |
Some smaller cities not covered in the national composite index also saw significant shifts. For example, prices in Thunder Bay rose by 3.3 percent, while Saint John saw a steep decline of 6.6 percent.
What’s causing the slowdown?
The housing market isn’t slowing on its own. A major contributor is ongoing political and economic tension with the United States. The US has introduced new tariffs on Canadian exports – 25 percent on general goods and 10 percent on potash and energy. This has caused inflation concerns and dented investor confidence.
On top of that, Canada’s federal election is scheduled for 28 April. The result may affect future economic policy, adding to the sense of unpredictability in the short term. Until the election outcome is clear, many Canadian buyers are likely to stay on the sidelines.
Montreal is bucking the trend and seeing house prices remain stable and even increasing
Regional differences
Not all markets are performing equally. While Ontario and British Columbia – home to some of Canada’s most expensive cities – have seen broad declines, other provinces are proving more resilient.
| City | Change (year-on-year) |
|---|---|
| Trois-Rivières | +18.3% |
| Quebec City | +12.7% |
| Sherbrooke | +12.6% |
| Montreal | +9.7% |
| Halifax | +8.8% |
| Brantford | -8.1% |
| Oshawa | -3.7% |
| St. Catharines | -2.8% |
| Source: Teranet–National Bank House Price Index, March 2025 | |
This suggests that more affordable or secondary markets in Quebec and eastern Canada are currently more stable, making them attractive options for international buyers.
British Columbia is a great place to be looking for property right now
What should overseas buyers consider?
If you’re buying from abroad, there are additional factors to weigh up.
With the Canadian dollar under pressure, your money may go further. Buyers using pounds, euros or US dollars may find this an opportune time to convert currency. If you’re buying in pounds, for example, your money will buy nearly 10% more Canadian dollars than this time last year.
Theres no guarantee that the exchange rate will stay this way, especially with the turmoil caused by Trump’s tariffs. Consider using forward contracts to secure today’s exchange rate for a future transaction. This can help you stick to a set budget without the worry of market swings. Learn more about a forward contract by talking with a currency specialist like Smart Currency Exchange today.
Focus on value rather than popularity. Well-priced homes in high-growth cities like Trois-Rivières and Sherbrooke could provide better long-term returns than overvalued properties in larger markets.
This could be the perfect time to make that Newfoundland dream a reality
Despite the uncertainties, overseas buyers with a clear plan and access to currency support could find that now is a sensible time to invest in Canadian property. While prices may fall further in the short term, long-term prospects remain strong in key regional markets.
If you’re exploring the idea of buying in Canada, we can connect you with experts who understand both the property and currency aspects of the process. Whether you’re planning a purchase soon or just starting to research, it pays to prepare well.
