Thousands of Canadians may soon enter the housing market as the country’s real estate looks to be on the verge of getting out of correction territory, according to the Royal Bank of Canada.
RBC Economics estimates more than 400,000 potential households have been suppressed since 2019, many of whom have been renting for longer than they’d have hoped and so they may finally be ready to make the plunge.
“Timing shouldn’t be underestimated because many would-be buyers have been working hard toward making a purchase with savings near a 25-year-high rate, and 25- to 34-year-olds employed at an above-average historical rate,” the report said.
“We see this influx of financially ready house hunters easily outweighing the lull in homebuyer demand from newcomers to Canada.”
Despite the escalating trade war, prospective homebuyers are increasingly optimistic about the economy and thus more likely to come off the sidelines in the near future, RBC said.
The labour market is expected to have a worker shortage next year as well, which will help job prospects.
This positive mindset comes as Canada’s real estate market appears to be stabilizing. The non-seasonally adjusted national average home price was $674,819 in July, up 0.2 per cent from a year ago, according to the Canadian Real Estate Association .
Total sales climbed 0.6 per cent in the month to 205,388, which is 1.5 per cent more sales than the long-term average for July.
“No matter where you are in Canada, more moderate housing market conditions can be expected to continue to bring buyers off the sidelines going forward,” CREA chair Garry Bhaura said in a statement last month.
RBC expects sales to keep picking up across the country in 2027, with Ontario and British Columbia — Canada’s most slumping markets — to be particular bright spots.
The bank predicts transactions will climb by 8.2 per cent in Ontario and 7.8 per cent in B.C.
“It will take longer for the condo market segment to turn around, however,” the report said. “Abundant inventory in the Toronto and Vancouver areas and investor apathy are bound to keep condo prices downward possibly into 2027.”
Overall, RBC expects the average home price to climb by 0.8 per cent next year.
But the bank also said it won’t all be smooth sailing when it comes to the housing market’s recovery because Canada’s trade war with the U.S., immigration cuts and affordability issues are still presenting headwinds for buyers.
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With Tim Cook stepping down as Apple Inc.’s chief executive, incoming CEO John Ternus has big shoes to fill.
Since taking over as chief executive in 2011, Cook has brought Apple from a market capitalization of less than US$350 billion to US$4.6 trillion.
During his time as CEO, Cook has watched Apple shares climb more than 2,700 per cent, while the S&P 500 Index has climbed 757 per cent over the same time.
Ternus faces an early test next week at a company event, where it’s believed the tech giant will unveil its first foldable phone.
Read more here.
- 9:45 a.m.: Bank of Canada interest rate announcement
- Today’s Data: Monthly average retail prices for selected products
- Earnings: NorthStar Gaming Holdings Inc., Hewlett Packard Enterprise Co., Snowflake Inc.
- Bank of Canada expected to hold interest rates steady, but renewed trade war muddies economic outlook
- It’s time for Canadian income tax rates to match those of the U.S.
- Linda Hasenfratz: Keep calm and trade on
- Dominic Barton named chair of Invest in Canada after CEO resigns
With housing prices making homeownership a stretch for many, Canadians, especially millennials, are finding ways to offset the cost. Find out how a growing pool of Canadians are paying off their mortgages.
Read more here.
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McLister on mortgages
Want to learn more about mortgages? Mortgage strategist Robert McLister’s Financial Post column can help navigate the complex sector, from the latest trends to financing opportunities you won’t want to miss. Plus check his mortgage rate page for Canada’s lowest national mortgage rates, updated daily.
Financial Post on YouTube
Visit the Financial Post’s YouTube channel for interviews with Canada’s leading experts in business, economics, housing, the energy sector and more.
Today’s Posthaste was written by Ben Cousins with additional reporting from Financial Post staff and Bloomberg.
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Posthaste: Are we on the verge of a home-buying tidal wave?
2026-09-02 12:00:24
