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Canadian real estate markets are currently struggling to gain momentum despite falling interest rates. Although some markets have reported data for September, RBC highlights that new inventory is consistently outpacing sales, leading to a downtrend in the market. This trend is characterized by rising inventory and sluggish sales, making it difficult for the market to stabilize.

Even with interest rate cuts of 75 basis points and lower property prices, buyer activity remains subdued. RBC's Rachel Battaglia points out that major markets like Vancouver and Toronto are experiencing only modest fluctuations, resulting in stagnant activity since spring. Easing supply-demand pressures are contributing to a continued decline in prices in these areas.

The increase in sellers across Canada’s largest real estate markets has significantly boosted inventory levels. New listings have surpassed existing home sales in most major markets, with only Edmonton and Montreal showing the opposite trend. This growing inventory, coupled with weaker buying activity, is putting downward pressure on market conditions, with expectations that a recovery in sales may not occur until next year as buyers await more favorable pricing and financing options.

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