In an increasingly fragmented Canadian housing landscape, buyers and sellers are experiencing dramatically different market conditions depending on where they call home. The latest Royal Bank of Canada housing report reveals a stark contrast across the country, with some regions firmly in buyers’ territory while others continue to favor sellers—creating what analysts are calling a “two-speed market.”
“What we’re witnessing isn’t simply a national cooling or heating of the market, but rather a complex regional divergence that defies simple characterization,” explains Samantha Chen, Senior Economist at RBC. “The days of speaking about a single ‘Canadian housing market’ may be behind us.”
According to the comprehensive analysis, markets including Edmonton, Calgary, and parts of Atlantic Canada maintain strong seller advantages, with properties frequently selling above asking price and often within days of listing. Calgary in particular has seen median home prices increase 7.2% year-over-year, with the average property spending just 16 days on market—nearly half the national average.
The housing dynamics in Vancouver and Toronto tell a markedly different story. These once red-hot markets have shifted decidedly in buyers’ favor, with increasing inventory levels providing more options and negotiating power. In Toronto, the report shows homes now staying on market for an average of 42 days, up from 27 days in 2023, while price reductions have become increasingly common.
“The primary factors driving this split market include regional economic strength, population growth patterns, and critically, the varying impacts of higher interest rates,” says Michael Rodriguez, real estate analyst with National Housing Associates. “Resource-rich provinces have been somewhat insulated from broader economic headwinds, while areas heavily dependent on knowledge industries have seen more sensitivity to borrowing costs.”
The Bank of Canada’s monetary policy continues to shape the housing market trajectory, though its influence varies substantially by region. After the latest quarter-point interest rate reduction, mortgage applications increased by 12% in Ontario and British Columbia, while showing more modest gains of 4-5% in Alberta and Saskatchewan.
For prospective homebuyers, the report suggests adopting region-specific strategies. “In seller’s markets like Calgary, buyers need to be prepared to move quickly and potentially offer above asking price,” advises Leanne Thompson, broker with Homeward Realty. “In contrast, Toronto buyers should leverage their newfound negotiating power and take time to explore multiple options.”
From a policy perspective, the fragmented market presents challenges for federal housing initiatives, which may produce uneven results across different regions. Provincial governments have begun implementing regionally-tailored approaches, with British Columbia focusing on supply increases while Alberta emphasizes infrastructure development to support its growing population.
Investors are closely monitoring these divergent trends, with real estate investment trusts (REITs) increasingly specializing in specific geographic regions rather than pursuing national strategies. This specialization reflects the recognition that local market knowledge has become more valuable in navigating Canada’s complex housing landscape.
As we move further into 2025, economists project this regional divide may widen before eventually converging. “Economic cycles don’t move in perfect synchronicity across regions,” notes Chen. “We’re likely witnessing different phases of market adjustment playing out simultaneously across the country.”
The report concludes that both buyers and sellers would be wise to understand where their local market sits within this divided landscape. As national housing statistics become less meaningful in capturing the reality on the ground, could this signal a fundamental shift in how we need to approach housing policy and personal investment decisions in Canada’s increasingly diverse regional economies?
