March 2025: Home affordability report
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Canadian cities where affordability improved
Where in Canada is owning a home becoming more affordable? In its latest data report, CREA pointed out that while sales fell in two-thirds of all markets, Ontario’s Greater Golden Horseshoe was hit especially hard. That’s quite apparent in Hamilton, where transactions dropped 35% year over year in February, according to the Realtors’ Association of Hamilton-Burlington. That resulted in the city’s average home price decreasing by $6,900, to $812,600; combined with lower mortgage rates, that cooled the required income by $3,450. The average monthly mortgage payment in Hamilton also dropped by $100, compared to January, to $4,194.
Buying in Toronto: A deep drop in sales
It’s been a rocky spring so far for Ontario’s largest market, as sales fell a whopping 23.1% annually in March, reports the Toronto Regional Real Estate Board (TRREB). Housing inventory, meanwhile, continues to pile up, with the number of newly listed homes skyrocketing over the short term, up 43% from February. That had a pull-down effect on the average home price in Toronto, which decreased by $5,400 between February and March to $1,068,500. As a result, the required income to purchase a home in the city decreased by $4,190, while the monthly mortgage payment shrank by $121 to $5,422.
Buying in Hamilton: Slower sales plague the Golden Horseshoe
Transactions in the Hamilton area have also dropped to 2009 levels, with just 701 units sold in March. This was due to “Continued uncertainty about tariffs and retaliatory tariffs is impacting housing activity,” according to Nicolas von Bredow, Cornerstone spokesperson for the Hamilton-Burlington market area. Between February and March, the average home price in Hamilton fell by $1,600, to $811,000, resulting in a $2,700 drop in the required purchasing power. The average monthly mortgage payment also fell by $79, to $4,115.
Buying in Fredericton: Vulnerable to volatility
Fredericton’s affordability ranking has fluctuated in recent months, placing it either at the top or the bottom of the chart in previous Ratehub affordability reports. The city’s lower average home price can subject the market to swings, even when there’s small changes to sales activity and price.
In March, home sales ticked up just 1.3% year over year, well outpaced by the number of newly-listed homes, which increased by 9.5% on an annual basis, according to the New Brunswick Real Estate Board (NBREA). That’s led local buying power to improve, with $2,500 less in required income to buy a home, corresponding to a $7,900 drop in price month-over-month. The average monthly mortgage payment also dropped by $71, to $1,704.
Canadian cities where affordability worsened
Just three of 13 cities saw affordability worsen in February, and all were located in Western Canada. With an average home price under the $500,000 mark, they each reflect how affordability conditions can be especially sensitive in lower-priced markets.
Buying in Winnipeg: A second month at the bottom
Unlike other major cities covered in this Canada housing affordability report, home buyer demand has remained consistent in Winnipeg throughout the early months of 2025.
