Canada’s housing market recovery continues to vary significantly across the country, with Vancouver remaining one of the weakest major markets while Toronto’s recent rebound showed signs of losing momentum in August, according to RBC Economics.
Toronto home resales declined 1.3 per cent on a seasonally adjusted basis in August, snapping a series of monthly increases that had continued since March.
RBC said the decline could reflect renewed economic uncertainty stemming from the Canada-U.S. trade dispute. However, the bank expects pent-up housing demand and government stimulus measures to provide some support to the market.
Vancouver recorded a stronger month for sales, with transactions estimated to have increased 8.5 per cent from July. But a significant rise in new listings pushed market conditions back in favour of buyers.
RBC said additional price declines may be necessary to maintain buyer demand in Vancouver and expects the city to remain the weakest of Canada’s six largest housing markets through the end of the year.
Calgary’s market also lost momentum in August, with home resales falling more than nine per cent compared with July.
In Montreal, meanwhile, an increase in housing inventory could eventually provide some relief from persistent affordability pressures by giving prospective buyers more options.
RBC economist Rachel Battaglia said the regional divide in Canada’s housing recovery is expected to continue through the remainder of 2026 as affordability challenges and structural market conditions evolve at different rates across the country.
The latest figures suggest Canada is unlikely to experience a uniform housing rebound, with local affordability, inventory levels, economic uncertainty and regional demand continuing to shape the pace of recovery in individual markets.
