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The post The Canadian Real Estate October Market Breakdown appeared first on REM.

This week, the provincial government proposed to rebate the full eight per cent provincial portion of the HST for first-time buyers on new homes valued up to $1 million. 

The province’s proposal, which will be included in the 2025 Fall Economic Statement, would save first-time home buyers up to $80,000 off the cost of a new home when combined with existing provincial relief.

While homes valued up to $1 million would qualify for the full rebate, there will be partial rebates on a phased-in basis for homes valued up to $1.5 million. 

Combined with the federal government’s proposed removal of its five per cent portion of the HST, first-time buyers could save a further $50,000.

In a statement, Ontario Real Estate Association (OREA) president Cathy Polan called the plan a “step in the right direction for the future of this province.”

She said this type of action “is exactly what we need to help young Ontarians and their families get a foot on the homeownership ladder.”

‘A drop in the bucket’

Evan Malach, a Toronto Realtor with Harvey Kalles Real Estate, specializes in working with first-time buyers, and says he sees the struggles people face as they pinch every penny to break into the market.

Malach says he welcomes action from political leaders to address the housing crunch, but does he think this new rebate would make a meaningful difference?

“In one sense, yes, and in another, it’s a drop in the bucket,” he told Real Estate Magazine. “It depends on where you’re looking.”

He sees some potential for the rebate to boost new condo sales, a market that’s at its lowest level in decades.  

“I think it remains to be seen how much this (rebate) will actually make any kind of difference. I think it’s a start, but there’s a lot more that could and should be done.”

Interest rates still hitting hard

Carl Gomez, chief economist and head of market analytics at CoStar, said he thinks the rebate could have a marginal impact, but not enough to make a big difference in overall affordability. 

“I don’t think it’s a silver bullet, per se,” he said.

He said in the metro regions, there is low inventory for homes under $1 million, except for small condos. 

“There is not that much supply out there for first-time buyers to open up the door,” he said. “But, it is a step.”

He said financing is a major part of the equation for first-time buyers, and mortgage rates are still a barrier.

“Your traditional five-year mortgage rate is still relatively high compared to where it was pre-pandemic,” he said, adding that rates are contributing to worse affordability conditions today than the historical average. 

While the Bank of Canada cut the key interest rate on Wednesday to 2.25 per cent, Gomez pointed out that the five-year Government of Canada bond yield, which is what fixed rates are based on, actually went up. 

“On the rate relief side, it’s still tough for those first-time buyers,” he said. “The borrowing environment is still the biggest factor that’s causing first-time buyers, and even investors, to wait on the sidelines.”

Courtney Zwicker

Courtney Zwicker is a digital reporter and associate editor for REM. Based in Atlantic Canada, she has over a decade of experience covering daily business news.

The post Ontario proposes tax rebate for first-time buyers, but is it enough? appeared first on REM.

Now is your window

It’s not going to be obvious. You won’t suddenly wake up to headlines screaming “It’s back!” You’re not going to feel it until long after it’s already passed. But for the agents who are paying attention – the ones putting in the work right now – opportunity is already forming.

The question is: Will you be ready when it fully arrives? Or will you still be waiting for permission to go?

The writing’s on the wall

I’ve spoken one-on-one with three different economists over the past few weeks: Benjamin Tal, Sherry Cooper, and Jason Mercer. All of them – from different backgrounds, using different data – said a similar thing: we’re roughly 12 months out from a healthier housing cycle. One even suggested it’s coming sooner.

Sure, there are still headwinds – tariffs, the federal government changing our Canadian landscape and making it unrecognizable, plus buyers who are skeptical and sellers who are still emotionally stuck in 2021. But interest rates are slowly creeping down, and consumer confidence will return as that momentum builds.

Which means your moment to start making moves is right now. Not six months from now. Not after the holidays. Now!

Stop waiting. Start doing.

Agents love to tell me they’re waiting.

Waiting for the market to stabilize.
Waiting for their clients to make a move.
Waiting for a sign that now’s the right time.

But success doesn’t come to those who wait. It comes to those who build and work their pipeline now, so that when confidence returns, they’ve already positioned themselves as the trusted expert who never disappeared.

Here’s your checklist of action steps:

Pick up the phone

If you haven’t called your database in the past 30 days, you’re already falling behind. Your past clients, your warm leads, your sphere – they need to hear from you. Not a social media post. Not a random ad. You!

Call to educate, not to sell. Update them on rate changes. Help them understand market conditions. Ask how you can support them.

Don’t overthink what to say. This isn’t about having the perfect script. It’s about being present.

Pro Tip: The more you track the notes from each of your calls and communications with each person on your list, the easier it will be to carry the conversation the next time you see them. That leads to stronger rapport building, which leads to trust, which then sets you up for the opportunity to earn their deal.

If you say you don’t know what to say, I’ll say you don’t want to work hard enough to run your business the way you should be running it. And if that’s the case, get out of the business because you can’t last that way.

Audit your marketing

Marketing isn’t what you do when you’re busy. It’s what you do so you can be busy.

Too many agents are running marketing plans based on hope – sporadic social posts, a few templated emails, maybe a postcard if they remember.

Do you have a campaign running? Do you know your budget? Are you tracking conversions?

If you’re not treating marketing like your main driver for growth, you’re not serious about actually growing.

Every piece of content you put out – from a video to a CMA to a coffee meeting – is either building MindShare or it isn’t. And if it’s not? You’re just wasting time.

Fix your follow-up

This one’s blunt: most agents are garbage at follow-up.

They make a call once. Maybe twice. Then they move on because the client didn’t call them back.

In a recent conversation, someone actually compared Realtors to sharks. Realtors swim around and bump into stuff, asking, “Are you ready to buy/sell yet?”. And when the answer is no, they move on, and then at some point down the road, maybe, they swim back around and ask the same question again. 

But deals don’t happen on the first call, or because of a random sales call. Most buyers or sellers don’t convert until at least the fifth to twelfth touchpoint. Remember that!

You need a system. A real one. With CRM notes. With scheduled check-ins. With value built into every follow-up.

If your process is “hope they call me back,” then your pipeline will always be empty, and you will always be stressing about where your next deal is coming from.

Train your clients

A lot of the frustration in this market isn’t about economics. It’s about expectations.

Buyers think they can afford more than they can. Sellers still want 2022 prices. And agents feel stuck in the middle.

But you’re not stuck – unless you refuse to lead.

Your job is to communicate to educate. To set realistic expectations. To coach your clients through the process, not just show up and say “okay.”

If you don’t train your clients to understand the market, the media will train them for you – and you will continue to find it harder and harder to get those deals done.

Plan for 2026

That’s right. 2026.

What you do right now sets the tone for how you finish your year, and just as importantly how your new year will start off.

The most successful agents aren’t just winging it – they’ve got an engineered plan that helps them see what their next quarter will look like, and what their year ahead looks like. That’s a plan. So –

• What does your brand look like a year from now?
• What will your marketing campaigns be for the spring?
• What are you doing today to ensure income consistency in 2026?

Planning that far out doesn’t mean having every step figured out. It means knowing the destination – so you can reverse engineer your daily behaviour to align with where you want to go.

Don’t just plan a little harder. Think bigger. Think longer. Make time to work on your 2026 business plan now so your pipeline is always full.

Final word: Your market is coming back — but only if you show up first

You don’t need a crystal ball. You just need to pay attention.

Yes, the past 18 months have been hard. Yes, the market’s been sluggish. But all signs are pointing to a shift.

So if you’ve been waiting for the go-ahead, this is it!

This is the time to rebuild your habits.
This is the time to reinforce your marketing.
This is the time to show up for your clients and re-establish trust.

Opportunity is already forming. And the people who’ll win in 2026 are already doing the work today.

Make your calls. Work on your business plan. And build your MindShare because it equals market share.

Don’t wait for the market to come back.

Be the reason it does!

David Greenspan

David Greenspan, CEO and founder of #MindShare101 is a nationally recognized keynote speaker, trainer and coach who helps sales professionals and businesses improve their sales and marketing efforts by bridging the gap between online and offline marketing to achieve a higher ROI on every marketing dollar spent. His direct, raw, and real approach is designed to motivate you and give you the advice you need to know.

David’s goal is to help you build MindShare, creating a top-of-mind intuitive, instinctive reaction so when people think of the product or service you offer, they think of your name first, always putting you in the right place at the right time to take your business to the next level.

The post The housing market is returning — but only for those who are ready appeared first on REM.

Greater Vancouver Realtors (GVR) reported 1,875 residential sales last month, a 1.2 per cent increase (23 sales) from the same month last year.

Despite the gain, sales remained 20.1 per cent below the region’s 10-year seasonal average of 2,348.

The benchmark price for all residential properties was $1.14 million in September, down 3.2 per cent from September 2024, and a 0.7 per cent dip from August.

“With another cut to Bank of Canada’s policy rate behind us, and markets pricing in at least one more cut by the end of the year, Metro Vancouver homebuyers have reason to be optimistic about the fall market,” said Andrew Lis, GVR’s director of economics and data analytics. “Easing prices, near-record high inventory levels, and increasingly favourable borrowing costs are offering those looking to purchase a home this fall with plenty of opportunity.”

Inventory levels on the rise

Sellers were also more active, with 6,527 detached, attached and apartment properties newly listed in September. That marks a 6.2 per cent increase year-over-year, and sits 20.1 per cent above the 10-year seasonal average of 5,434.

The total number of homes listed on the MLS reached 17,079, up 14.4 per cent from 14,932 in September 2024. Current listings stand 36.1 per cent above the long-term average of 12,553.

The sales-to-active listings ratio across all property types was 11.3 per cent in September. Historically, sustained ratios below 12 per cent signal downward pressure on prices, while levels above 20 per cent point to price gains, said GVR.

Outlook

“The past few years have been quite challenging for the market, beginning with 2022’s rapid increase in interest rates, major political and policy shifts in subsequent years, and recent trade tensions with the USA weighing on the market,” Lis said. “With the acute impacts of these events now fading, we expect market activity to continue stabilizing to end the year, barring any unforeseeable major disruptions.”

The post Vancouver home sales rise slightly as borrowing eases appeared first on REM.

However, the bulk of the affordability gains appear to be “rearview mirror,” according to a new report by RBC assistant chief economist Robert Hogue. 

“Further advancement becomes more challenging once interest rates reach a stable plateau as it depends exclusively on home price movements and household income trends,” reads the report. “Substantial price declines or robust increasing income would be necessary to drive more meaningful gains.”

Hogue anticipates broadly stable pricing across Canada over the next two years, with some regional variations and moderate wage increases. 

Purchasing power threatened

Worsening labour market conditions are beginning to weigh on household finances, undermining a key source of support for homebuyers, reads the report. Slowing wage growth threatens to erode purchasing power just as housing markets in several regions show tentative signs of stabilizing.

Over the past 18 months, stronger household incomes have been instrumental in improving affordability. Rising earnings account for more than one-third of the recent drop in RBC’s national aggregate affordability measure, signaling improved conditions for buyers. This offset the impact of stubbornly high prices and elevated borrowing costs.

That buffer is now fading, according to Hogue. Employment has weakened, and with it the pace of income growth. 

Ontario markets appear especially vulnerable. The province’s jobless rate has climbed well above pre-pandemic levels, ranking among the highest in Canada. Compounding the challenge, the ongoing trade war continues to pressure Ontario’s manufacturing base, with ripple effects across related sectors and service industries.

The report says Vancouver has the worst affordability conditions in the country.

“Property transactions remain suppressed despite modest summer gains, underscoring persistent affordability burdens. More declines in value are expected with elevated inventory and supply and demand conditions favouring buyers.”

Meanwhile, affordability has improved substantially in Calgary, where construction is robust and new supply and sky-high inventory levels are giving buyers lots of options.

Poor affordability and weakening job prospects weigh heavily on the Toronto market, challenging buyers and sellers, reads the report. Ownership cost pressures have eased noticeably in the past year, particularly for condominiums, “but the progress is not enough to fully unlock pent-up demand,” it says.

The post RBC: Canada’s housing affordability gains may have peaked appeared first on REM.

The small gain comes as the number of transactions on the resale market continued to rise for the fifth consecutive month, noted senior economist Daren King.

He said the “very soft” market conditions in Ontario tightened somewhat with the recent spike in activity, allowing prices to rise during the month in Toronto, Hamilton, and Ottawa-Gatineau. 

Prices remain down from 2024

Despite this growth in August, the index still remains 4.6 per cent below its December level, with declines over this period of 7.9 per cent in Toronto, 7.4 per cent in Hamilton, and 1.5 per cent in Ottawa-Gatineau. 

Market conditions also eased significantly in British Columbia, with Vancouver and Victoria posting declines of 7.1 per cent and 0.4 per cent, respectively. 

“Against the backdrop of the current trade dispute, market resilience has depended on differing levels of affordability,” said King. “Indeed, the markets with the highest affordability challenges saw the sharpest declines, as the financial risk of such a large real estate transaction was amplified by economic uncertainty.”

What’s next?

King said it is still too early to say whether the positive trend will continue in the months ahead, even with Bank of Canada rate cuts. The Bank of Canada lowered its key interest rate by 25 basis points to 2.5 per cent on Wednesday, marking its first cut since March.

“Continuing uncertainty, moderating population growth, the risk of persistently high long-term interest rates, and a potentially further deterioration in the labour market will continue to weigh on the housing market,” said King.

The post Home prices up for the first time in seven months: National Bank appeared first on REM.

According to real estate sales and marketing company MLA Canada, only 35 projects launched in the past year — over 40 per cent below the five-year average — and fewer than 400 presale units sold, marking an 85 per cent decline from historical benchmarks.

For Barrett Sprowson, senior vice president, residential at Peterson Real Estate, the numbers match what he’s seeing on the ground.

“I’ve said the market is stagnant (but) that was very diplomatically understated. If I were a little more honest, I’d say it’s kind of anemic and as flat as I’ve ever seen it.”

How we got here

Sprowson describes the current climate as the result of a long buildup of policy and economic shifts.

“It’s the classic case of the frog in the water (slowly) getting boiled. For the longest time, the market bailed us out on many of the regulations, fees and taxes various governments have layered into the equation,” Sprowson notes.

But now, he says the bailout has stopped, and the rise of interest rates has compounded the issue, with, “The typical everyday buyer moving to the sidelines.”

And while buyers hesitate, supply from earlier cycles is now hitting the market.

“We’re starting to see a lot of the delivery and completions of projects that started in that really robust cycle coming out of the pandemic. That’s causing oversupplied inventory in the current market.”

In other words, today’s glut will work its way through, but the resulting slowdown in new project launches means supply shortages — and price spikes — could follow in a few years.

The role of government intervention

One thing Sprowson highlights is the “perfect storm” of fees, taxes and levies layered on new development.

He notes that about 35-40 per cent of a new home’s cost is some type of fee or levy that the end user absorbs. “It’s got to a point where the buyer can’t accommodate the fees and taxes. And on top of that, we charge GST and property transfer tax. It’s tax on top of tax.”

Sprowson feels government intervention to reduce these costs is the biggest thing that could make a difference.

The British Columbia government recently announced changes to how Development Cost Charges (DCCs) are collected, allowing delayed payment schedules. But while Sprowson welcomes the move, he says it doesn’t address the fundamental issue.

“It’s helpful. It’s a good strategy and we’re all appreciative of governments listening … But like my friend Michael Ferreira at Anthem Properties said recently, ‘It’s like they’re nibbling around the edges.’ It’s not moving the bigger levers I think should be looked at.”

Without significant cost relief, he warns, many projects simply won’t start. “We essentially cannot deliver homes at a price that the market can pay or will absorb.”

What this means for Realtors

For Realtors working to move presale inventory, Sprowson says success comes back to the fundamentals.

“Gone are the days when you overprice a home to get a listing and the market takes care of it. Accurate, aggressive pricing will be in your clients’ best interests.”

Beyond pricing, execution matters. Sprowson says the best Realtors he’s worked with have a specific plan for every home, not a blanket approach. And they’re responsive.

“If you’re a listing agent, you’ve got to be on your showings … It’s not rocket science. Give good service, be efficient, be effective. Follow up. Get back to basics.”

What to watch for this fall

Looking ahead to the fall presale market, Sprowson doesn’t expect a dramatic change unless a few big things shift.

For one, the federal government would have to figure out things with the U.S. to remove the uncertainty impacting various market factors.

The second thing would be some kind of interest rate relief, while the third would be a significant move by the different governments on DCCs and other fees, regulations and taxes attached to development.

If even a couple of these things occur, he says, “Then I think things really loosen up … Ever the optimist I am, I believe something will shake loose, hopefully in favor of the buyer and maintaining supply.”

For now, developers like Peterson are staying active with a mix of projects across rental and presale. The company is leasing up its Revolve purpose-built rental in East Vancouver, preparing to complete another nearby project early next year, and breaking ground on a significant West Side community.

As for the broader presale market, Sprowson points to resale data as the leading indicator of recovery. “If the resale market starts pushing up towards the 10-year sales averages, as soon as people start missing out on homes and there’s multiple offers, then we’ll start seeing it.”

Until then, Metro Vancouver’s presale market looks set to remain in a holding pattern, waiting for buyers to return, government to adjust its levers or both.

Emma Caplan-Fisher

Emma Caplan-Fisher is an editor and writer for REM. She has over a decade of experience in various content types and topics, including real estate, housing, business, tech, and home & design. Emma’s work has also been featured in Cottage Life, the Vancouver Real Estate Podcast, the Chicago Tribune, Narcity Media, Healthline, and others. She holds a Certificate in Editing from Simon Fraser University.

The post Presale market stalled: What’s ahead for Metro Vancouver’s new-build housing? appeared first on REM.

But, with an unexpected trade war suppressing sales and prices in Canada’s biggest regions, market conditions have been weaker than expected.

In a housing report released Tuesday, RBC assistant chief economist Robert Hogue said the bank now projects home resales will decline 3.5 per cent in Canada to 467,100 units this year, with the first half of 2025 seeing a 4.1 per cent pullback, largely concentrated in Ontario and B.C.

‘Gradual recovery’ on the horizon

“Encouragingly, recent signs of an ongoing recovery have emerged,” said Hogue. “Prospective buyers are re-entering the market as economic fears ease and lower interest rates gain traction. We expect this gradual recovery to continue in the second half of 2025, setting the stage for stronger demand in 2026.”

Hogue said RBC is projecting a 7.9 per cent rebound in home resales next year to 504,100 units, which is still under the pre-pandemic five-year average of 511,000 units.

“Several constraints will temper the recovery. A fragile labour market, reduced immigration targets, and affordability challenges will limit the pace of growth,” Hogue noted. 

Prices expected to dip

The national composite RPS Home Price Index is expected to rise by 0.7 per cent in 2025, but this reflects gains made earlier in the year.

“We anticipate prices will decline in the latter half of 2025 and into 2026 with Ontario and B.C. experiencing the steepest drops due to high inventory levels and strong competition among sellers,” said Hogue.

Nationally, prices are expected to decline by 0.7 per cent in 2026, reversing this year’s modest increase. 

“For pricing, supply-demand conditions have shifted in buyers’ favour, particularly in Ontario and B.C., where affordability issues are acute.”

Pandemic frenzy made even

“The pandemic’s impact on the housing market appears to have run its course. Exceptional circumstances—including rock-bottom interest rates, government income support, and shifting housing needs—accelerated transactions that would have occurred later,” said Hogue. “The subsequent market slump triggered by rate hikes in 2022 largely corrected this unsustainable surge.”

RBC’s data suggests a growing number of Canadians are ready to re-enter the market under the right conditions, such as improved affordability, stable interest rates, and better job prospects, said Hogue.

Improved affordability has limited impact

Declining ownership costs driven by lower rates and moderating prices in some regions have made homeownership the most affordable it’s been in three years. 

“This trend is expected to continue, encouraging more buyers to act,” said Hogue.

However, significant affordability challenges persist, particularly in high-priced markets like Ontario and B.C.

“Despite some relief, the share of household income required to cover ownership costs will remain well above pre-pandemic levels, limiting the pace of recovery.” 

Sellers competing for offers in Ontario and B.C.

Inventory is at decade highs in Ontario and B.C., as an influx of listings is met with weaker demand.

However, inventory is tight in the Prairies, Quebec, and Atlantic Canada, where listings are still below pre-pandemic levels.

“We expect supply and demand to gradually rebalance as sales pick up,” said Hogue. “However, it will take time for the market in Ontario and B.C. to stabilize. Until then, strong competition among sellers will likely keep prices under pressure with declines continuing into early 2026 before steadying.” 

The post Housing resales to pull back by 3.5% in 2025: RBC appeared first on REM.

Compared to the U.S., Canada’s mortgage industry—while restrictive—is uniquely structured to prioritize long-term stability. While there’s always room for modernization, our framework has historically shielded homeowners from the volatility that has plagued other markets. 

That said, with growing interest in non-traditional lenders and fintech options, Realtors are now expected to help clients evaluate a more complex, evolving landscape that comes with new opportunities and risks.

A mortgage system built on stability

One of the defining strengths of Canada’s mortgage system is its conservative lending approach. Unlike markets where risky lending practices have triggered financial crises, Canadian banks and Federally Regulated Financial Institutions (FRFIs) operate under strict underwriting standards. Borrowers must demonstrate they can manage their mortgage obligations over the long term. This cautious approach was a key factor in shielding Canada from the mortgage meltdown that struck the U.S. during the 2008 financial crisis.

Another major difference lies in mortgage terms. While the U.S. market is dominated by 30-year fixed-rate mortgages, Canadian mortgages generally have shorter terms, most commonly five years or less. This system requires homeowners to renew their mortgages periodically. While this may seem like an inconvenience, it also allows homeowners to take advantage of lower rates when the market shifts. If rates continue on a downward trend, Canadians can refinance or renegotiate more favourable terms.

For Realtors, this means educating clients about the importance of renewal timing and preparing them in advance, especially in today’s climate where renewing at a higher rate could significantly impact affordability.

An evolving market with more choices

Canada’s mortgage market has traditionally been dominated by the major banks, with the landscape now evolving. In the U.S., non-deposit taking lenders account for over 70 per cent of mortgages, whereas in Canada, that number was closer to 20 per cent in 2023. As a result, Canadian borrowers have historically relied more on traditional financial institutions, which can limit options and flexibility. However, alternative lenders, digital platforms, credit unions, and mortgage brokers are increasingly offering more choices, enhancing competition and providing Canadians with access to a broader range of mortgage products. 

With these new options come important tradeoffs. Real estate agents should be aware of the regulatory gaps, varying levels of consumer protection, and potential risks clients may face when working with less-established digital lenders. Privacy and data security are also key issues when applying through newer digital platforms.

Government-backed mortgage insurance, provided through the Canada Mortgage and Housing Corporation (CMHC), also plays a crucial role in supporting first-time homebuyers. With a down payment as low as five per cent, Canadians can enter the housing market without saving for a typical 20 per cent down payment. Safeguards such as the mortgage stress-test have contributed to consistently low default rates, ensuring that Canada’s housing market remains resilient even in challenging economic times.

As client curiosity about alternative lenders grows, real estate professionals should build strong partnerships with a range of mortgage advisors and brokers. This way, they can provide clear, informed recommendations tailored to their clients’ financial situations.

Is my client ready for a new mortgage solution?

While the U.S. mortgage industry has largely digitized, many Canadian borrowers still face long approval times, piles of paperwork, and manual income verification. Fortunately, this is changing. A new generation of fintech lenders is offering fully online mortgage applications, document uploads, and real-time approvals. 

This shift isn’t one-size-fits-all. Realtors need to assess whether clients are ready for a fully digital experience or whether they may require a more traditional, high-touch approach. There’s a digital divide between younger, tech-savvy clients and others who are more comfortable with in-person services. 

As more fintech companies enter the mortgage space, traditional banks will be pressured to modernize their offerings and compete more heavily on price. While this may benefit some buyers, it also introduces questions about regulatory oversight and long-term viability—areas where Realtors should stay informed and able to guide clients accordingly. 

What’s next for Canadian mortgages?

While the Canadian mortgage system is built on stability and responsible lending, there is room for modernization to better serve today’s homebuyers, continuing the evolving role of the Realtor. Agents are no longer just helping clients find the right property, they’re also expected to offer guidance on financing, especially as borrowing becomes more complex.

This includes helping clients weigh tradeoffs between speed and support, between digital tools and personal service, and between traditional institutions and newer entrants. The growing diversity of mortgage options means Realtors must be ready to help clients adjust their expectations and even guide them out of their comfort zone towards better-suited solutions. 

Increased competition among lenders could drive innovation, potentially lowering borrowing costs and providing Canadians with greater choice in securing the best mortgage terms. But, regulation and consumer protection will need to catch up. Realtors should be prepared to explain both the advantages and limitations of newer lending models and set realistic expectations around timelines and approvals.

Despite these challenges, Canada remains one of the safest and most stable places to secure a mortgage. With responsible lending practices, government safeguards, and a growing number of available options, Canadians now have more resources than ever to navigate their homeownership journey with confidence. 

By staying ahead of these leading industry trends, Realtors can become even more valuable advisors, helping their clients stay prepped for the best home buying options in Canada’s evolving market.

Justin Herlick

Justin Herlick is the CEO and co-founder of Pine, Canada’s first all-in-one digital homeownership platform. A graduate of Queen’s University, Justin began his career in Silicon Valley, where he contributed to transformative startups like Blend and Instabase. Motivated by the challenges he faced navigating the mortgage process, he launched Pine to provide Canadians with a seamless and straightforward way to find, buy, and finance their homes.

The post Helping clients navigate Canada’s evolving mortgage lending landscape appeared first on REM.

A report from the Canada Mortgage and Housing Corporation in June found that condominium apartment sales in Toronto have dropped 75 per cent from 2022 to the first quarter of 2025. In Vancouver, condo sales have dropped 37 per cent for the same period, according to the report.

Condos built to invest in – not to live in

Meanwhile, a report from data firm CoStar Group found that Canada’s inventory of condos has risen 400 per cent over the last three years. Carl Gomez, CoStar’s chief economist and author of the report, told Real Estate Magazine that much of the inventory is smaller units that were primarily built for investors.

“Those condo units aren’t designed for people to live in,” Gomez said. “They’re basically more of a hedge, get an investor in.”

However, investors have now fled both the Toronto and Vancouver markets due to higher interest rates than during the pandemic, which have now made units unaffordable. Gomez said either prices will have to come down or units will have to be made bigger in order to start moving the inventory, a pivot that won’t be an easy pill for developers to swallow as both will eat into their profits.

It may be necessary, though, given they are currently bleeding capital, according to Gomez. CMHC’s report found that investors face as much as a six per cent capital loss on pre-construction purchases concluded in 2024 in Toronto, and project cancellations have gone up five times in the city since 2022. In Vancouver, cancellations have gone up 10 times in the same time frame, according to the report.

Risk was overlooked, says Toronto Realtor

Toronto real estate agent Christopher Bibby told REM that the condo market really began to unravel in 2022, after interest rates went up.

“The writing’s on the wall now,” he said. “Prices have started to come down.”

CMHC’s report says prices have gone down 13.4 per cent in Toronto between 2022 and the first quarter of 2025, and 2.7 per cent in Vancouver. Bibby said the price erosion over the past two months has been the fastest and steepest he’s ever seen in the more than 20 years he’s been in the business, but it has been a stimulus for transactions to start finalizing after being stuck.

Bibby said that when interest rates were low, pre-construction prices were more than the resale value because there was a belief that prices would keep going up, which turned out not to be true. Add to that inflation, which has raised the cost of materials, as well as higher development fees and the inability to raise rents to meet higher costs, and condos are not as profitable a business as they once were.

Bibby felt back in 2021 that the market had hit its peak, but he said sellers didn’t want to believe that prices would eventually come down. At the time he felt it was a risky business venture, and he is not surprised about the current situation.

“People weren’t assessing what they were buying,” he said. “There was this belief the market would only go one way.”

A ‘classic bubble’

In Vancouver, Realtor Steve Saretsky told REM that what led to this situation was 20 years of a bull market.

“It’s kind of like a classic bubble,” he said. “It’s just all unraveling on itself.”

When there was high demand and interest rates were low, there was a speculation frenzy, he said. Now the market is experiencing the hangover after the party, with a record number of units seeing completion at exactly the wrong time.

CMHC’s report says that a record high of 25,572 condos were completed in Toronto in 2024, while 12,442 were done in Vancouver. Toronto now has 14 times more months of inventory than it did in 2022, according to the report, and it would take 58 months to sell that current stock at the current rate of sale. That means that developers will now put a hold on new build starts, which will sow the seeds for the next crisis down the line in three to four years, when supply won’t meet demand, according to Saretsky.

He sees the current condo bust as a natural market correction, though, after about 20 years of no price correction. 

“When you have 20 years of rising home prices basically every year, it creates complacency,” Saretsky said. “People think they can’t lose money in real estate. It creates malinvestment.”

Eric Stober

Eric Stober has over 10 years experience as a journalist and writer at publications big and small, including Global News, Toronto Life, Post City Magazine, Greencamp.com, the Toronto Star and The Grid.

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