Inventory absorption may finally ease oversupply, setting the stage for healthier conditions across Canada
A glut of condominium listings that has bogged down Canada’s urban housing sector could start to wane by the latter half of 2026, paving the way for a more normal market as buyer demand and inventory levels realign.
According to the latest market report from RE/MAX Canada, published today (Dec. 15), despite price reductions and greater choice in 2025, prospective buyers largely stayed on the sidelines as affordability pressures and economic unease dampened confidence.
“Affordability and cost of living pressures weighed heavily on homebuyers nationwide,” says Don Kottick, President, RE/MAX Canada. “However, with two consecutive cuts to overnight rates in recent months failing to meaningfully shift consumer behaviour, it’s clear broader issues including job security and economic uncertainty continue to undermine consumer confidence levels.”
The RE/MAX Canadian Condominium Report, covering Jan. 1 through Oct. 31 in seven key markets, found resale activity down sharply from year-ago levels in places such as Calgary, the Fraser Valley and Greater Vancouver. While average prices were modestly higher in Edmonton and Halifax, prices softened in Toronto and Vancouver.
A key dynamic shaping the market has been an abundance of listings for both resale and new condos which has slowed sales and put downward pressure on values in many cities. With more units on the market than buyers ready to act, conditions have favoured buyers but prolonged the time it takes for inventory to clear.
RE/MAX anticipates that markets with less extreme oversupply, such as Halifax, Ottawa and Edmonton, will lead the recovery, with other major centres following gradually late next year or early in 2027.
The report suggests that as units are gradually absorbed and economic stability increases, confidence may return to the condo segment, bringing listing levels closer to longer-term norms and fostering healthier market conditions.
