The Bank of Canada has lowered its target for the overnight rate by 25 basis points to 2.25%, marking its second consecutive rate cut this year. This decision comes amid continued economic uncertainty, influenced by US  trade policy and a softening labour market, as the Bank seeks to support growth while maintaining price stability.

In its statement, the Bank noted that “Canada’s economy contracted by 1.6% in the second quarter, reflecting a drop in exports and weak business investment amid heightened uncertainty. Meanwhile, household spending grew at a healthy pace.” The Bank also expects growth to receive support from rising consumer and government spending and residential investment, before picking up gradually as exports and business investment begin to recover.

This latest rate cut may help stabilize housing demand and market confidence through the remainder of 2025, but the Bank emphasized a cautious outlook as  Canada faces a period of economic transition.

Bank of Canada’s 2025 Policy Interest Rate Announcement Schedule

Bank of Canada announces its decision for the overnight rate target eight times a year, typically on a Wednesday. The schedule for 2025 is as follows:

• Wednesday, January 29

• Wednesday, March 12

• Wednesday, April 16

• Wednesday, June 4

• Wednesday, July 30

• Wednesday, September 17

• Wednesday, October 29

• Wednesday, December 10

Read the full interest rate announcement below:

The Bank of Canada today reduced its target for the overnight rate by 25 basis points to 2.25%, with the Bank Rate at 2.5% and the deposit rate at 2.20%.

With the effects of US trade actions on economic growth and inflation somewhat clearer, the Bank has returned to its usual practice of providing a projection for the global and Canadian economies in this Monetary Policy Report (MPR). Because US trade policy remains unpredictable and uncertainty is still higher than normal, this projection is subject to a wider-than-usual range of risks.

Whether you’re buying, selling, or investing, knowing where the hottest real estate markets are is critical to making smart decisions. Market conditions are shifting in 2025, with traditional locales like Toronto and Vancouver priced out of reach for many homebuyers and showing lower returns for investors. Meanwhile, emerging markets in unexpected places are becoming more attractive to buyers.

What Makes a Real Estate Market Hot?

Before discussing the hottest real estate markets in Canada, it’s important to ask what makes a real estate market hot. Key indicators are:

• Low housing supply compared to demand.

• Multiple-offer situations and bidding wars.

• Quick selling times.

• Rising home values.

The hottest real estate markets aren’t necessarily the most expensive ones; they’re locations where demand is high and sales are strong. Today’s hot markets are driven by numerous factors, including:

• Population migration to more affordable areas.

• Remote work flexibility.

• Economic diversification, such as growing tech industries and government investment in infrastructure and services.

• Demographic changes such as aging Baby Boomers moving to smaller homes, and younger families immigrating to Canada.

• Investor behaviour based on localized opportunities.

These causal factors help to explain why markets vary across the country and even within a particular region. For example, the hottest real estate markets in Ontario might be driven by population growth and tech sector opportunities. In contrast, the hottest real estate market in BC might depend more on international investment and lifestyle factors.

The Prairies  

If you’re looking for the single hottest real estate market in Canada, you might find it in the Prairie provinces.

Saskatchewan

Saskatchewan may not instantly spring to mind when you’re considering where to buy, but you might want to take a closer look. With the South Saskatchewan River flowing through its centre, Saskatoon offers fantastic outdoor spaces right alongside a bustling research community and resource-based industries. Home prices in Saskatoon have risen 8.2% year-over-year as of August 2025. Regina continues to be affordable, but with growing demand and limited inventory, prices are expected to rise steadily. With its strengths in mining and agriculture, Regina has the long-term economic stability to support home values going forward.

Alberta

Although Calgary’s housing market is returning to a balanced state, Edmonton remains one of the hottest real estate markets in the prairie provinces, with detached homes seeing a 5.3% annual price increase in August 2025. Edmonton’s affordability, strong job growth in energy and technology, and high quality of life continue to attract new residents.

Manitoba

Manitoba frequently gets overlooked by house hunters and investors, but it deserves serious consideration. Its strong agricultural base and manufacturing centre complement its central location to make it appealing for people who value stability.

Home values in Winnipeg saw an 8.1% increase year-over-year in August 2025, making it one of the hottest real estate markets in the region. Winnipeg is a great choice for home buyers who want excellent food and entertainment options as well as amazing outdoor adventure opportunities.

Atlantic Canada

Some of the hottest real estate markets in Canada are on the East Coast, but the best investments have shifted a bit in recent years. While Nova Scotia remains attractive, markets have cooled somewhat, and the spotlight is now on Newfoundland and New Brunswick.

Newfoundland and Labrador currently lead the country in annual increases in home prices, with a 12.3% year-over-year increase as of August 2025. St. John’s is attracting new and returning residents with its laid-back lifestyle, abundant fresh seafood, and easy access to European and US destinations.

New Brunswick also boasts some of the hottest real estate markets in Canada. In August 2025, Fredericton saw a 6.2% increase in home prices from August 2024, while the average sale price for homes in Saint John rose 10.5% over the same period.

Quebec

When looking for the hottest real estate markets in Canada, take a closer look at Quebec. You may not be considering it due to the higher income taxes, and if you don’t speak French, you may be intimidated by having to learn it. However, Quebec residents will tell you that you get excellent value for your tax dollar there, and that there are many communities where you can live and work without speaking French at all.

Quebec City, with all of its charm and culture, is not just a great tourist destination! It’s experiencing robust demand for real estate, with single-family homes rising 7% in value over the past year. Homes in Montreal recently reached an all-time high, with prices having increased 8.9% from August 2024 to August 2025.

Lower overall home prices, lower cost of living and very high quality of life have made Quebec one of the hottest real estate markets in Canada.

Ontario

Although many home buyers balk at the high home prices in Toronto, Ontario still has affordable options and great opportunities for real estate investors.

Peterborough and the Kawarthas

With its sparkling lakes and abundant forests, the Peterborough/Kawarthas area is still close enough to both Toronto and Ottawa for times when you need big-city attractions. Entry points for real estate are still reasonable, and home prices have increased about 3% over the past year. Investors can take advantage of the robust vacation rental market and the student rental market in Peterborough.

Rideau Lakes

This area features an impressive system of connected lakes and waterways that are perfect for boating enthusiasts and hikers. Low entry points and steadily rising home prices make it a great option for house-hunters and investors alike.

Northern Ontario

Look to Thunder Bay for one of the hottest real estate markets in Ontario. Homes in Thunder Bay are being snapped up quickly, with a huge increase in total sales being fueled by a growing number of homes on the market as well as rising prices.

To find the hottest real estate markets in Canada right now, look outside the traditional hotspots in Ontario and British Columbia. Markets are balanced in many areas, while prices are actually decreasing in others. Time purchases and sales strategically to get the best value and return on your investment. Work with an experienced real estate agent for the smartest, most up-to-date insights on what’s going on in Canada’s vast and varied real estate landscape.

Courtesy REMAX LLC

The 1,720 sales in September were not high enough to offset the 3,782 new listings coming onto the market, driving further inventory gains as we move into the fall. There were 6,916 units in inventory in September, 36 per cent higher than last year and over 17 per cent higher than levels traditionally reported in September. Both row and apartment-style homes have reported the largest boost in supply compared to long-term trends. 

“Supply levels have been rising in the resale, new home and rental markets. The additional supply choice is coming at a time when demand is slowing, mostly due to slower population growth and persistent uncertainty. Resale markets have more competition from new homes and additional supply in the rental market, reducing the sense of urgency amongst potential purchasers. Ultimately, the additional supply choice is weighing on home prices,” said Ann-Marie Lurie, CREB® Chief Economist. 

Supply levels relative to demand typically drive shifts in home prices. In September, the sales to new listings ratio dipped to 45 per cent, and the months of supply pushed up to four months for the first time since early 2020. This is a higher level of supply compared to demand than is typically seen in the Calgary market and, should this persist, we could see a market that shifts more in favour of the buyer. However, conditions do vary by property type, price range and location. 

Inventory gains for apartment style homes over the past several months have contributed to buyer market conditions in this segment, driving year-over-year price adjustments of over six per cent for a total benchmark price of $322,900 in September. While the detached segment has also seen a rise in the months of supply, it has not been as high as the apartment condo sector. At a benchmark price of $749,900, detached home prices are only one per cent lower than last year, with most of the adjustments driven by the North East and North districts.

Detached

Sales in September slowed to 859 units, nine per cent lower than last year and below long-term trends for September. At the same time, new listings rose to 1,905 units, causing the sales to new listings ratio to fall to 45 per cent, levels not seen since 2018. While there has been an unexpected shift in September, it is too early to tell if this trend will continue as prior to this month the detached market has remained relatively balanced. 

Improved supply choice is causing prices to decline relative to the record highs reported during the spring. As of September, the unadjusted benchmark price was $749,900, down nearly one per cent from both last month and last year. While prices have eased from peak levels across all districts, the largest decline occurred in the North East and East district at over six per cent. Despite recent adjustments on a year-to date basis, prices remain nearly two per cent higher than last year’s levels, with the City Centre reporting the highest gain at over four per cent. 

Semi-Detached

New listings rose to 361 units in September, while sales fell to 156 units, causing the sales to new listings ratio to drop to 43 per cent. This also caused a rise in inventory levels and the months of supply pushed up to nearly four months. This is a significant shift compared to last month, where there was less than three months of supply. 

Like the detached sector, it is too early to say if this trend will continue, but so far it has had minimal impact on home prices. As of September, semi-detached price was $684,800, slightly lower than last month and nearly one per cent higher than last year. Year-to-date price growth has been the highest for semi-detached homes at over three per cent, as this segment took longer to shift from a seller's market to one that was more balanced. Most of the price growth was driven by gains reported in the City Centre. 

Row

Following a pullback last month, new listings posted modest monthly gains. The 592 new listings were met with 304 sales, causing the sales to new listings ratio to fall to 51 per cent. This is not as low as the other property types and at these levels it was enough to prevent any further monthly gain in the already elevated inventory levels. September inventory levels were 1,099 units, the highest September level reported since 2018, and 30 per cent higher than longer-term trends for the month. The largest gains in inventory occurred in the North East district, which also reported the highest months of supply and price decline compared to last year. 

More supply choice has impacted resale prices, with the unadjusted benchmark price being $437,100. This is down less than one per cent over last month and nearly five per cent lower than last year’s prices. Year-to-date price adjustments have been much smaller at one per cent, as declines in the North East, North and South East districts offset the gains reported in other parts of the city. 

Apartment Condominium

The most significant adjustment in the market occurred in the apartment condominium sector as improving rental supply, delayed adjustments in interest rates and improved selection for other property types has slowed apartment style demand from both first-time buyers and investors. September reported 401 sales and 924 new listings, dropping the sales to new listings ratio to 43 per cent and causing inventory to rise to 1,999 units. 

The rise in supply caused the months of supply to push up to five months, the first time it has done that since 2021. As elevated levels of supply have persisted since June, prices have been trending down. As of September, the benchmark price was $322,900, down over one per cent compared to last month and over six per cent compared to last year. The year-to-date price adjustment has been just over one per cent. Condo prices have slid across all districts compared to last September. The largest decline occurred in the North East district at over ten per cent, while the smallest decline occurred in the City Centre at five per cent. 

REGIONAL MARKET FACTS

Airdrie

New listings reached a September record high with 295 units. The gains in new listings were met with a pullback in sales causing the sales to new listings ratio to fall to 45 per cent and inventory rose to 571 units. While inventories have been generally trending up throughout this year, this is the first time that the months of supply pushed above four months since 2020. The improved options weighed on home prices, which continued to trend down this month. In September, the unadjusted benchmark price was $526,000, down one per cent compared to last month and nearly five per cent lower than last year's levels. Despite recent adjustments year-to-date prices declined by just over one per cent, not enough to offset last year's annual growth of eight per cent.

Cochrane

New listings in Cochrane also hit a September record high with 148 units. While sales are similar to last year's levels at 62 units, the boost in new listings did cause the sales to new listings ratio to drop to 42 per cent this month. This led to further inventory gains and the months of supply pushed above five months. Improved supply levels also took more pressure off home prices this month. In September, the unadjusted benchmark price was $584,300, down by nearly one per cent compared to last month, but still one per cent higher than last year's levels. Much of the supply adjustment has only recently occurred in the Cochrane market and the year-to-date benchmark price remains nearly four per cent higher than last year.

Okotoks

Okotoks was one of the few larger areas that did not see a lift in new listings in September. The 69 new listings were down compared to levels reported last year, and with 51 sales this month, the sales to new listings ratio remained elevated at 74 per cent. While inventory levels were only slightly higher than last month, the months of supply has remained relatively low at two and a half months. Despite the relatively tight conditions, prices continued to adjust in the market. This in part can be related to the competition from new properties, impacting resale prices. As of September, the total residential benchmark price was $613,900, down by over one per cent compared to last month and nearly three per cent lower than last September. Despite the adjustment, on a year-to-date basis, prices were still one and a half per cent higher than last year. 

Click here to view the full City of Calgary monthly stats package.

Click here to view the full Calgary region monthly stats package.

Like any housing market in Canada, Calgary real estate has navigated extreme changes in recent years due to the pandemic, economy and supply chain issues. While home prices peaked a couple of years ago, interest rates remain high, making buying a home quite expensive. However, Calgary’s liveability, relative affordability compared to other parts of Canada, and diverse economy make it a desirable place to live. If you want to get into the Calgary housing market, here are a few things to consider in the next 10 years.

Inflation and Affordability in Calgary

Inflation is at the forefront of everyone’s minds. It is getting increasingly difficult to afford even the necessities, never mind putting anything extra into savings to buy a house. Additionally, interest rates have skyrocketed, making a house even more out of reach. As a result, the amount of money people can save and borrow to finance their homes is taking a significant hit, which has slowed price growth and made it much harder for first-time homebuyers to qualify for a mortgage.

Calgary real estate statistics reveal that while the city remains more affordable than markets like Toronto or Vancouver, the inflation-driven cost increases are affecting buyers across all price ranges. Continuing high interest rates are making it harder for borrowers to pass the federal government’s mortgage stress test. The stress test requires borrowers to prove they can afford to make payments that are the higher of: a) two per cent above the contract rate, or b) the government benchmark of 5.25 per cent. This, in turn, could lead to changes in the types of homes built in Calgary, with some people turning to group ownership or smaller homes.

Supply and Demand in Calgary Real Estate

When it comes down to the basics, the prices of homes in Calgary and whether they rise or fall essentially comes down to how many are on the market at any given time and how many people want them. The recent rise in prices can be attributed to the high demand during the pandemic and several years of less-than-ideal housing stocks.

Unlike some other Canadian cities, Calgary has the advantage of adding more housing relatively easily because new construction is not restricted by physical or municipal barriers. So, more houses will be built to accommodate the high demand, but it will take a bit of time.

The Calgary area real estate development pipeline shows promising growth in new construction starts, though many projects remain months or years from completion. Developers are increasingly focusing on multi-family dwellings and transit-oriented communities to maximize land use and address housing shortages.

Building Costs and Supply Chain Issues in the Calgary Real Estate Market

As inflation has impacted Calgary residents trying to buy food and gas, rising costs have also affected Calgary and the real estate market. Supply chain issues during the pandemic, combined with high shipping and material costs, have resulted in homes being built for far more money than they used to be.

In addition, homebuyers have been more focused on energy efficiency and environmentally friendly home materials. Although sustainable homes are good to strive for, they come at a price. Homebuyers either must come up with more money to buy a house the same size or use the same amount to buy a smaller home.

H2 The Rise of Tech in Calgary

Calgary has been working for years to attract startups to the city, and its efforts have begun to pay off. They rose six points to number 28 on CBRE’s annual scoring of tech talent, indicating that they are reining in tech companies and workers. As a result, Calgary-based tech companies netted a record $322.2 million in funding.

Technology will also play a role in Calgary’s real estate scene in the coming years. The rise of e-commerce and new concepts like e-scooters have changed how people live in the city, making it more accessible for homebuyers in all areas of Calgary. Since residents are no longer required to live near their workplaces and other frequently visited areas, Calgary is likely to see a shift to previously less popular neighbourhoods, as they are further removed from the city’s central hubs. There could be a more distributed development pattern for Calgary in the coming decade, with innovation hubs potentially emerging across the city rather than concentrated solely downtown.

How Working from Home Has Impacted Calgary Real Estate

Even before the pandemic, Calgary was beginning to face a problem with downtown office vacancies due to a shift in how work is conducted. During the pandemic, it shifted even more, and now many workers opt to keep a work-from-home job rather than find a job in an office. Working from home makes people more open to moving to the suburbs of Calgary or even into rural Alberta. Despite downtown Calgary showing signs of revitalization through strategic office-to-residential conversions and increased transit ridership, the hybrid work model also remains prevalent across many industries.

The flip side is that working from home requires more space in homes for offices, which could increase demand for larger homes in established communities. While some people are taking advantage of remote work to move to rural communities, most people are opting to remain in urban centres like Calgary to retain a sense of community or look to surrounding cities like Airdrie, Cochrane, and Okotoks for cheaper real estate.

Calgary area real estate companies continue to respond to this mixed work environment by creating flexible living spaces that accommodate both remote work needs and reasonable commutes to downtown offices. This has created interesting movement patterns on the Calgary real estate map, with some previously overlooked neighbourhoods gaining popularity due to their balance of space, affordability and accessibility to the gradually revitalizing downtown core.

How is the Calgary Real Estate Market Right Now?

So, how is the real estate market in Calgary at the moment? Real estate in Calgary is experiencing modest but steady growth. Unlike the more volatile markets in Toronto and Vancouver, Calgary offers more affordable housing, with average prices hovering around $616,000. However, Calgary luxury real estate listings continue to attract interest from both domestic and international buyers.

The current Calgary real estate statistics show increased buyer activity compared to previous years, driven largely by interprovincial migration and the city’s strong job market. Neighbourhoods throughout the Calgary area real estate map are experiencing varied growth patterns, with communities near transit lines and employment centres commanding premium prices.

Investors are particularly drawn to the stability of the Calgary real estate market, which has managed to avoid the dramatic swings experienced in other major Canadian cities. With inventory levels remaining relatively tight and demand staying consistent, Calgary’s housing sector presents a balanced environment for both buyers and sellers as we move toward the long-term trends that will shape the next decade.

As Calgary’s real estate market continues to evolve in the next ten years, residents can continue to adapt to changes in how they work and navigate the city. Building new forms of housing can help meet the needs of a diverse population and maintain affordability while adapting to changes in the city’s housing sector.

Courtesy REMAX LLC