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Royal Bank of Canada (RBC) now projects that Canadian home resales will decline by 3.5 % in 2025, amounting to approximately 467,100 units—down from earlier, more optimistic spring estimates. The drop is expected to be somewhat front-loaded, with a sharper 4.1 % pullback in the first half of the year, particularly concentrated in Ontario and British Columbia.

Despite the early-year downturn, RBC anticipates a rebound in resale activity in 2026, forecasting a 7.9 % increase to around 504,100 units—though still slightly under the pre-pandemic five-year average of 511,000 units. Several lingering headwinds—such as a fragile labour market, lowered immigration targets, and affordability pressures—are expected to temper the strength and pace of the recovery.

Price trends are also projected to diverge across regions. Nationally, the composite RBC RPS Home Price Index is expected to barely climb by 0.7 % over 2025, driven by early-year gains, but pull back later in the year and into 2026, with an anticipated 0.7 % decline. Affordability-strained markets like Ontario and B.C. are likely to experience the most pronounced drops, while more balanced markets in the Prairies, Quebec, and Atlantic Canada may see modest price gains in both years.

Read the full article on: REAL ESTATE MAGAZINE