Toronto and Vancouver: softer sales volumes as buyers took a more measured approach amid higher price thresholds and greater inventory choice.
Ottawa, Montréal and Halifax: increased transaction activity, driven by value-oriented luxury segments, stable local demand and improved borrowing conditions.
Nationally: average prices remained largely unchanged, underscoring the market's underlying resilience.
New York, New York and Toronto, Ontario--(Newsfile Corp. - January 14, 2026) -Engel & Völkers has released its 2025 Year-End Canadian Luxury Real Estate Market Report. In 2025, Canada's luxury housing market entered a more strategic phase. While sales volumes declined in Toronto and Vancouver, activity increased in Ottawa, Montréal and Halifax, and average prices held steady nationwide. According to Engel & Völkers' year-end report, this divergence reflects more selective buyer behaviour and has coincided with growth at several flagship brokerages.
"2025 marked a shift from momentum-driven buying to more deliberate decision-making," said Stuart Siegel, president & CEO, Engel & Völkers Americas. "Buyers were highly selective, but they remained willing to pay for quality, location and long-term livability. That discipline is what kept prices stable, even as activity diverged by market. Despite uneven sales activity across the broader market, Engel & Völkers reports growth at several of its flagship Canadian affiliated brokerages in 2025 that outpaces the local markets."
As buyers became more selective, advisors with strong local insight and global reach played an increasingly critical role in facilitating successful transactions, particularly in competitive or value-sensitive segments of the luxury market.
Key Engel & Völkers shops outperformed their market on a transaction basis, including Ottawa, Montréal, Toronto and Vancouver. In Ottawa, transactions grew by 16.59 per cent year-over-year while the overall market declined by 1.3 per cent. In Toronto, sales rose 15 per cent despite GTA-wide sales declining 11.2 per cent over the same period. Vancouver was up by seven per cent as the market declined by 10.4 per cent. In Montréal, Engel & Völkers posted seven per cent growth while the overall market declined 2.9 per cent.
A national market defined by regional divergence
Engel & Völkers' national analysis shows that Canada's luxury markets are no longer moving in lockstep. Instead, performance increasingly reflects local fundamentals, including employment stability, housing supply, investor activity, pricing relative to incomes and lifestyle appeal.
This divergence highlights a broader transition toward precision over speculation, with buyers prioritizing well-located, turnkey homes over discretionary or opportunistic purchases.
Key data findings:
Halifax recorded a 23% increase in $1-1.99 million residential detached sales in 2025, with average prices up 3% year over year.
Montréal saw a 32% rise in detached sales priced $1-3.99 million in 2025, with average prices holding at $1.49M for a second year, despite a 21% increase in listings.
Ottawa's residential detached market in the $1-1.99 million range saw a 33% increase in units sold, with average prices rising 2 % year over year.
Toronto sales in the $1-1.99 million segment fell 15% in 2025, while average prices held at $1.5M million and listings dropped 44% year-over-year.
Vancouver's $1-1.99 million residential detached market saw a 9% decline in units sold in 2025, while prices held steady and new listings rose 18%.
What This Means for 2026
Looking ahead, Engel & Völkers expects Canada's luxury housing market to remain selective and segmented, with performance continuing to vary by region and price band. Markets offering relative value, lifestyle appeal and economic stability are expected to outperform, while pricing discipline and realistic seller expectations will remain essential.
Key takeaways:
- Did luxury home prices fall in Canada in 2025?
- No. While sales volumes declined in some major markets, average luxury home prices remained stable nationwide, reflecting disciplined buyer behaviour and limited supply of high-quality properties.
- Which Canadian cities saw luxury real estate growth in 2025?
- Ottawa, Montréal and Halifax recorded year-over-year increases in luxury sales activity, while Toronto and Vancouver experienced softer volumes.
- Why did some brokerages grow despite lower sales volumes?
- As the market became more selective, buyers and sellers increasingly relied on experienced advisors with strong local and global expertise, supporting growth at select flagship brokerages.
Click here to download the full report. For media interviews and hi-resolution images, contact evamericas@mattepr.com.
About Engel & Völkers
Engel & Völkers is a global luxury real estate brand. Founded in Hamburg, Germany, in 1977, Engel & Völkers draws on its rich European history to deliver a fresh approach to luxury real estate in the Americas with a focus on creating a personalized client experience at every stage of the home buying or selling process for today's savvy homeowner. The Engel & Völkers Network currently operates approximately 300 shop locations with approximately 6,000 real estate advisors in the Americas, contributing to the global network of over 16,000 real estate professionals in more than 30 countries, offering both private and institutional clients a professionally tailored range of luxury services, including real estate and yachting. Committed to exceptional service, Engel & Völkers supports its network of advisors with an array of premium quality business services; marketing programs and platforms; as well as access to its global network of real estate professionals, property listings, and market data. Each brokerage is independently owned and operated. For more information, visit www.evrealestate.com.
MEDIA CONTACTS
Lina Zhao
Matte PR
416-515-7667 ext. 702
evamericas@mattepr.com
Chris Zoeller
Senior Marketing Director
Engel & Völkers Americas
973-271-7339
chris.zoeller@engelvoelkers.com
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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/280383
Source: Engel & Völkers
