Canadian housing markets show regional divergence in August

Canadian housing markets exhibited significant regional divergence in August, characterized by cooling demand and varying price trends across major cities.

In the Greater Toronto Area (GTA), demand for single-family homes has weakened, narrowing the gap with the condo market. Data from Wahi indicates that 95 per cent of qualifying single-family home neighbourhoods were underbid in August. Overall, 79 per cent of the 4,199 GTA homes sold during the month changed hands below the asking price.

According to RBC Economics, regional performance varied widely. British Columbia remains the weakest region, with Vancouver and the Fraser Valley seeing continued price declines. In Alberta, Calgary and Edmonton are cooling; Calgary resales fell more than 9 per cent seasonally adjusted from July, with condo prices dropping 8 per cent year-over-year. While single-family homes in Calgary saw a modest 1.1 per cent year-over-year price decrease, high inventory and a low sales-to-new listings ratio have moved the market into balanced territory. Montreal continues to face affordability challenges, though expanding inventory may provide some relief.