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In July 2025, Canadian real estate sellers canceled approximately 22.5% of their listings, marking a significant increase from previous years. This uptick in cancellations has been a consistent trend since 2023, with the volume of canceled listings reaching a new high for the month of July. The surge in cancellations is attributed to various factors, including a lack of qualified demand, affordability issues, and sellers' reluctance or inability to further reduce prices. Many sellers, anticipating a rebound in the market, are opting to delist their properties temporarily, hoping for improved conditions in the future.

The current cancellation rate surpasses previous recessionary peaks, such as those during the 2008 financial crisis and the early months of the COVID-19 pandemic. Despite the higher cancellation rates, the volume of canceled listings has reached unprecedented levels due to the increased number of properties on the market. This situation is further compounded by a wave of new completions, which is contributing to the rising inventory and making tighter market conditions less likely.

The elevated cancellation rates and increasing inventory levels suggest that the Canadian real estate market is experiencing a phase of market capitulation. Sellers are adjusting their strategies in response to the current market dynamics, and the combination of higher inventory and canceled listings indicates a shift in market conditions. As the year progresses, it remains to be seen whether these trends will continue and how they will impact the overall real estate market in Canada.

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