Canada’s real estate market has yet to experience the anticipated boost from lower interest rates. While several regions have started to report data for September, RBC's analysis suggests a consistent pattern of rising supply and sluggish demand. Despite cheaper borrowing costs and slightly lower home prices, potential buyers remain hesitant to enter the market

"Even with 75 basis points worth of interest rate cuts, we aren’t seeing buying activity pick up across the board just yet," says RBC's Rachel Battaglia, who authored the report.

The report further highlights that Canada’s two most expensive real estate markets—Vancouver and Toronto—are seeing modest fluctuations in activity. These fluctuations have kept both markets relatively stagnant since the spring. Lower demand and easing supply pressures have contributed to continued downward pressure on home prices in these key areas.

In September, four out of the six major real estate markets monitored by RBC saw new listings outpace sales. Vancouver, Fraser Valley, and Calgary experienced significant growth in new listings, while Toronto saw increases in both new listings and sales. However, Toronto’s listings have consistently outpaced sales over the past year. The only cities where sales exceeded new listings were Edmonton and Montreal.

New listings increased across all major markets this September, which has caused inventories to grow and hover near the equivalent of four months of supply, Battaglia explains. Sluggish sales and rising inventory are taking some of the momentum out of the market.

This rise in supply is a national trend, which has allowed inventory to build up beyond the levels seen during the peak of Canada’s real estate boom. Calgary experienced the largest annual growth in active listings ( 49.4%), followed by Fraser Valley ( 37.1%) and Toronto ( 35.5%). In contrast, Edmonton saw a notable decline in inventory, dropping 11.6%.

Battaglia predicts that demand will eventually pick up, but it will take time. While falling prices and lower interest rates are expected to make home purchases more attractive, buyers have continued to hold off, pushing expectations for a market recovery into next year.

Concluding Summary
The Canadian real estate market is experiencing a slowdown, with growing inventory and sluggish sales trends in major cities despite falling interest rates. While some cities like Edmonton and Montreal have bucked the trend, overall, the housing market remains under pressure, and the recovery is now expected in 2024.


Zabi Afghanzada Realtor 416 879 2500
HomeLife Elite Services Realty Inc.,Brokerage
Independently Owned And Operated
Office 416 283 1555