Housing prices could drop 2 per cent in 2025, along with slight recession, says CMHC

Housing prices should drop a little bit by the end of the year.

That’s according to the summer update from the Canada Mortgage and Housing Corporation (CMHC).

Across the country, housing prices should fall about 2 per cent, but Ontario and British Columbia would see larger drops.

The decrease is caused by developers delaying projects due to high costs and uncertainty.

Trade tensions and slower population growth have also contributed to a slight recession this year.

But the CMHC says housing market should gradually recover in 2026 as international trade issues ease up.