Canada’s fall housing market hits some ‘turbulence’: RBC report

We independently select everything we recommend. Buying through us may earn us a commission, which supports our work.

The trade war with the United States has resulted in a bumpy ride for Canada’s housing market. A recent report, titled More turbulence hits Canada’s housing markets to kick off fall, from RBC Economics, pointed to falling resales in multiple major housing markets, including Vancouver, Calgary, Edmonton, Winnipeg, Toronto, Montreal and Ottawa.

Many major markets also saw declines in new listings, suggesting sellers are feeling the chill, with only Edmonton seeing new listings rise in September up more than 11 per cent.

At the same time, its resales fell more than 10 per cent.

That is the biggest percentage decline except for Montreal where sales fell nearly 12 per cent year over year. Its new listings were also up more than seven per cent year over year.

RBC Economics noted that trade uncertainty is not the only factor affecting markets. The recent increase in bond yields in Canada and the U.S. has pushed borrowing costs for fixed mortgages higher, which affects affordability.

A silver lining for cities like Toronto is that supply is rising, which can help improve affordability, the study found. Yet a challenge is the type of supply. It added that “an abundance” of condominiums for sale accounts for nearly a third of all new listings.

In turn, the aggregate price is down nearly seven per cent year over year.

Vancouver remained in a four-year slump last month, RBC noted. Resales were down more than eight per cent, and prices fell nearly six per cent. Affordability and confidence remain headwinds, it added, with further price depreciation likely necessary to draw in buyers.

Despite seeing falling sales in September (nearly four per cent), Calgary is comparatively “stable and historically robust” with prices stabilizing to 2025 levels, RBC found.