Canada's Housing Market Shows Signs of Recovery

Canada's resale real estate market may be on the cusp of recovery, according to a recent report by RBC Economics. The report notes that resales have been increasing since April and inventory is moderating while prices are stabilizing.

The improvement in housing affordability and job market could unlock pent-up demand as the built-up inventory of homes begins to decline. However, the recovery will likely be uneven across Canada, with some areas recovering faster than others.

RBC predicted that sales will drop about four per cent by year's end, while the benchmark price could fall about two per cent to $794,200. Despite this, sales are expected to improve nearly seven per cent in 2027, with the benchmark price expected to gain almost one per cent to $800,700.

The report also points out that low confidence among prospective buyers has been fuelled by a slumping market of falling prices, poor affordability, a soft economy, and job security concerns. However, conditions are easing, with expectations of improving economic growth for the remainder of this year and into 2027.