Canada’s housing market is facing a mixed outlook as regional disparities persist, according to a recent report by RBC Economics. The report highlights varying conditions across the country, influenced by factors such as affordability, pent-up demand, demographics, job markets, and local inventory levels. Robert Hogue, RBC Economics’ assistant chief economist, noted that even macroeconomic factors like interest rates and immigration policy are shaped by local contexts.
In September, many major markets saw declines in home resales, including Toronto, Vancouver, and Montreal. Toronto, which experienced a brief recovery earlier this year, saw a 5.2% drop in resales and a 0.5% decrease in benchmark prices month-over-month. Rising mortgage rates and escalating U.S.-Canada trade tensions contributed to buyer hesitation. Meanwhile, Montreal saw a 20% increase in inventory from a year ago, which has limited home price growth.
Vancouver’s housing market remains in correction mode, with no signs of recovery imminent. Prices continue to fall, and affordability concerns keep buyers on the sidelines. In contrast, Calgary’s market has remained stable, with single-detached homes seeing a 4.4% increase in resales and a 1% price drop compared to 2025. However, condo apartments in Calgary experienced significant declines in both resales and prices.
At the national level, RBC Economics expects pent-up housing demand to be unlocked in the coming months, provided affordability improves and the economy withstands trade-war pressures. However, the road ahead is likely to be uneven across different markets.