Canadian Housing Slump Set to Continue Before Uneven 2027 Recovery
RBC forecasts Canadian home sales will decline 3.6% to 453,200 units in 2026, while the benchmark price index falls 2.3% to $794,200. Resales have increased since April and price declines have slowed, but these improvements are not expected to reverse the weak annual trend. British Columbia sales are projected to fall 4.6% before rebounding 8.8% in 2027, while Ontario is forecast to decline 0.5% and then recover 8.2%.
Condominiums are expected to recover more slowly than single-family homes and townhouses because of excess inventory in Vancouver and Toronto and weak investor demand. RBC expects the policy rate to remain at 2.25% through 2026 before rising in 2027, but warns that trade tensions, Middle East instability, tighter immigration policy and persistent affordability barriers could disrupt progress. After four false starts since 2023, even an optimistic recovery is expected to remain uneven and include setbacks.
Read on: Business Examiner
