The result is a market increasingly tilted toward buyers, especially where inventory growth has cooled the pace of bidding wars.
The national picture, however, conceals wide regional variation with Greater Toronto’s aggregate price down 3.5% year-over-year, with both detached and condo segments under pressure. Greater Vancouver slipped 3.1%, while Montreal surged 4.9% and Ottawa held steady with a modest 0.3% uptick.
“Buyer sentiment is being influenced by a complex mix of economic and psychological factors,” says Soper. “Despite materially improved affordability in major cities, many Canadians – particularly younger ones – remain cautious amid high post-pandemic living costs, perceived job uncertainty, and general unease about our economic prospects. It’s understandable that some are waiting before making such a significant purchase.”
Soper says the Bank of Canada’s September rate cut of 25 basis points to 2.5% has offered some relief.
“While mortgage rates remain above their pandemic lows, the Bank’s recent rate cut is easing pressure on borrowers,” he says, while cautioning that economic uncertainty and cautious sentiment are tempering any immediate rebound.