Sales volumes in several major Canadian cities have slowed, and benchmark prices in some regions have pulled back from peak levels. So if prices aren’t surging anymore, why does housing still feel broken?
Here’s what’s actually happening.
Sales Activity Has Slowed Sharply
Recent real estate board data across major markets has shown lower transaction volumes compared to peak pandemic years. Fewer buyers are active — partly because borrowing costs remain elevated compared to pre-2022 levels.
Prices Have Softened — But Not Reset
While some markets have seen price declines from peak highs, many homes are still significantly more expensive than they were five or ten years ago. A modest pullback doesn’t automatically restore affordability.
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Higher Rates Changed Buyer Math
Even if home prices dip slightly, mortgage payments remain high when interest rates are elevated. For many households, monthly carrying costs — not sticker price alone — determine affordability.
Sellers Are Holding Back
Some homeowners are choosing not to list, especially if they locked in lower mortgage rates in prior years. That reduces available inventory and keeps the market tight despite slower demand.
Condo and Pre-Construction Weakness
In some urban centers, especially in the condo segment, investor demand has cooled. That affects new project launches and resale activity — creating uneven conditions across housing types.
In short: activity is down, some prices are down, but borrowing costs, long-term price growth, and limited listings keep affordability strained.