In January 2025, Canadian MLS® Systems saw a significant 11% increase in new listings compared to December 2024, marking the largest jump since the late 1980s (aside from the pandemic). However, sales slowed toward the end of the month, likely due to concerns over a potential trade war with the U.S.

Sales dropped 3.3% from December, mainly in the last week of January. Despite the dip in sales, the number of homes listed increased. This combined with fewer sales has softened the market, particularly in British Columbia and Ontario, according to CREA’s Senior Economist.

The national sales-to-new listings ratio fell to 49.3%, down from the mid-to-high 50s in late 2024. Historically, this ratio hovers around 55%, which suggests the market is shifting toward a more balanced situation.

By the end of January, there were nearly 136,000 homes listed, up 12.7% from last year but still below the long-term average of 160,000 listings for the time of year.

Looking ahead, while uncertainty over tariffs may hold some buyers back, others might benefit from a softer pricing environment and lower interest rates. Those considering buying or selling in 2025 should consult a local REALTOR® for guidance.

Nationally, inventory rose to 4.2 months, slightly above the long-term average of five months. In terms of home prices, the National Composite MLS® Home Price Index remained nearly unchanged, down just 0.08% from December 2024. Year-over-year, the national average home price reached $670,064, a 1.1% increase from January 2024.