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The Canadian housing market may be stabilizing as interest rates hold steady and buyer confidence returns. Experts say we’re seeing a shift back toward the “old normal” — the market before COVID-19’s upheaval. Robert Hogue, assistant chief economist at RBC, says more listings and slower decision-making echo pre-pandemic patterns. “This is more like the market we knew before 2020, giving buyers breathing room,” he said.
Sales numbers are reflecting this shift. According to the Canadian Real Estate Association (CREA), national home sales rose 2.8% in June, after a 3.5% rise in May. In the Greater Toronto Area, activity rebounded 17.3% since April. While concerns over U.S. trade tariffs remain, economists say fear is no longer freezing buyers. “There’s less doom and gloom now,” Hogue noted, adding that barring trade shocks, recovery will likely continue. RBC predicts no further interest rate cuts in the near future — signaling a new, more stable borrowing landscape.
Yet, the Canadian housing market still faces challenges. Affordability remains a major hurdle. Mortgage broker Mary Sialtsis in Ontario said many qualified buyers are holding off. “It’s psychological. Rates feel high compared to COVID lows, but buyers need to adjust expectations,” she explained.
Mortgage professionals like Hannah Martens say activity is heating up despite rate hesitancy. “Prices are high, rates aren’t great — but people are still buying,” said the president of the Canadian Mortgage Brokers Association Atlantic. Royal LePage’s Anne-Elise C. Allegritti agrees. “Borrowers are adjusting. We won’t see COVID-level rates again, and that’s okay,” she said, describing the current rate climate as a long-overdue market correction. As Canadians shed pandemic-era expectations, housing stability may be taking hold.
