Canada’s housing market shows ‘persistent regional splits'

Canada's housing market ended the summer showing diverse conditions across provinces and even within provincial markets like Ontario. RBC Economics recently published a report showing provinces like Ontario are experiencing "persistent regional splits," revealing "mixed momentum" where one market is seeing improving conditions while another is mired in an ongoing slump, weighed down by economic uncertainty.

Specifically, Toronto's long-expected housing recovery faltered in August, as escalating trade threats from the United States created a cloud of uncertainty for buyers and sellers.

Canada's largest housing market saw its sales decline year over year in August.

Yet RBC noted the picture for Ottawa's housing market is substantially different. The housing market in Canada's capital continued to show its resiliency despite economic uncertainty. There, average prices edged upward in August, year over year. That is the first sign of growth since late 2025.

In British Columbia, Vancouver and the Fraser Valley have seen continued declines in average prices, though RBC noted that the downward trend is slowing. Still, the report stated the province's market is the weakest of all resale markets in Canada despite sales increasing in August from July.

Resales and prices continue to fall year over year.

Calgary and Edmonton also experienced declining year-over-year sales. In Calgary, RBC noted condominiums account for much of the weakness in the market. In contrast, single-family detached homes have seen only slight sales declines, the report added.

Edmonton showed modest price growth month over month in August, despite falling resale activity and higher inventory.

Both Alberta markets are showing a balance between sellers and buyers, whereas Vancouver and Toronto have market conditions that increasingly favour buyers over sellers, the report added.