As real estate market across Canada sees ‘gradual recovery’ prices in Ontario will remain ‘under pressure:’ report

Canada’s housing market is likely to continue a “gradual recovery” in the second half of the year but a glut of listings in Ontario and British Columbia will likely “keep prices under pressure” in those markets until 2026, a new report from RBC suggests.

RBC’s report says that “supply-demand conditions have shifted in buyers’ favour,” in Ontario. The province has more homes for sale than it has since June 2010. The report suggests that Ontario’s large inventory and competition among sellers will cause prices to drop at steeper rates than other provinces before the market begins to “stabilize” in early 2026.

In contrast, Ontario and B.C. will continue to face challenges with “imbalances in condo markets in Toronto and Vancouver likely spilling into other segments.“