Improved affordability and a boost in inventory levels could entice cautious buyers back into the housing market, according to REMAX Canada's 2025 Fall Housing Market Update.
According to data supplied by REMAX brokers and agents, home sales declined year-over-year in 62 per cent of markets analyzed between January 1 and July 31, 2025, largely reflecting the economic uncertainty being felt across the country, including the tariffs and ongoing trade negotiations with the U.S. government.
Looking ahead, REMAX Canada expects the average national price to decrease by 6.5 per cent this fall, while national home sales are also expected to decline by five per cent through the remainder of 2025.
The report projects the prices in Windsor-Essex will drop by as much as four per cent by the end of the year.
The average sale price between January and July sits at $575,179, virtually unchanged from the same time frame in 2024, but is projected to decrease to $552,172 by the end of 2025.
Goran Todorovic, broker of record at REMAX Care Reality-Team Goran, says a lot of buyers are paralyzed, in a holding pattern, and watching but not pulling the trigger because they have uncertainty.
He says a lot of sellers have lofty dreams and price points from two-and-a-half years ago during the COVID-19 pandemic when the average selling price was much higher but feels those need to be adjusted to change that for-sale sign to a sold sign.
"Those individuals that had appraisers come through or a real estate agent come through and give them a value, and if you were in that $1.4 million, $1.5 million mark, well, your home is probably worth $1.2 million," he says.
Listings remain strong with 7,933 between January and July of this year, a 12.9 percent increase over the same time a year ago.
Todorovic says it's more of a 'balanced market' right now, but sellers need to stop dreaming of the past few years.
"Lots of homes still being sold, lots of homes being sold. Sales were down last month only seven per cent but year-to-date they're only down three per cent," he says. "Lots of homes are still being sold, and lots of transactions are still being done. Just the sellers have to lower their sights."
Todorovic believes there will be a bit of a frenzy once the tariff situation is settled and there's job security, saying the next six months will be a good time to 'buy wisely' and with conditions.
"Conditions on whatever you like to make sure you get a good quality home. When the market upticks and the frenzy kicks in, unfortunately buyers will be forced to put in bids and put in offers that have no conditions because they're competing with so many other cash offers," he says.
Eight per cent of Canadians say they plan to sell their home in the next year, and among them, confidence is strong.
According to the Leger survey commissioned by REMAX Canada, 63 per cent believe they'll be able to secure their asking price-a sign that sellers may already be aligning their expectations with what buyers are willing to pay in today's more balanced market.