Particle.news
Download on the App Store

Canadian Housing Market Cools as Buyers Gain Leverage

Elevated inventory, higher mortgage costs plus new U.S. tariffs have reduced buyer demand and pressured sellers to lower prices.

Overview

  • Calgary sales fell about 16.4% in August, the Calgary Real Estate Board reported, with the citywide benchmark slipping 1.1% to $569,800 and apartment and row units posting the steepest year‑over‑year drops.
  • Metro Vancouver recorded a 4.6% year‑over‑year fall in August sales and a composite benchmark of $1,081,900, down 5.6%, while listings remain roughly a quarter above the region's 10‑year seasonal average.
  • Greater Toronto Area activity ended a five‑month rebound as seasonally adjusted sales dropped 1.3% month‑to‑month to 5,484 units and TRREB’s price index was down about 4.5% year‑over‑year to C$931,200.
  • National and U.S. listing data show rising supply and continued list‑price declines with delistings down and active inventory growing, a pattern that is giving buyers more negotiating power heading into the fall.
  • Market participants point to the Bank of Canada’s held policy rate, five‑year mortgage averages near 4.8%, recent U.S. tariffs, slower immigration and softer investor demand as the main forces dampening sales and shifting bargaining power to buyers.