More Canadian real estate sellers are pulling listings, as market conditions loosen. Canadian Real Estate Association (CREA) data shows the share of canceled listings climbed in July, continuing an upward trend amid rising inventory. The elevated share of cancellations, combined with higher inventory, has pushed volumes to a record high. A wave of new completions is compounding pressure, making tighter conditions less likely—and sellers more likely to contribute to market capitulation.
Canceled Canadian Real Estate Listings Approach Record Share, But The Volume Is Already There
Canadian real estate sellers have been canceling their listings at an unusually high rate in recent months. A national NBF analysis shows that over 1 in 5 listings (~22.5%) were canceled in July. The share has been steadily climbing since 2023, and while it has yet to print a record, it’s now approaching previous extremes.
However, the volume of canceled listings has reached a new high for July. Back in mid-2022, the share of canceled listings was higher, but the volume is over 25% higher today as much more inventory languishes on the market. With the market’s current pace, this is on track to exceed the record by year-end.
Canadian Real Estate Listing Cancellation Rate Eclipses Prior Recession
The current cancellation rate is much higher than past recessionary peaks. During the 2008 financial crisis, cancellations peaked at less than 18% of listings. Even in 2020, at the height of pandemic uncertainty, cancellations climbed sharply—but not as much as we’ve seen in recent months.
A few major trends are behind the surge in listing cancellations—including a lack of qualified demand, affordability, and resistance (or ability) to further slash prices. It’s not uncommon to find sellers under the impression that the downturn is just a temporary phase, planning to re-list in a few months when lower rates stimulate more buying. That gamble over the past few years hasn’t exactly paid off, as inventory climbs higher and those relisting face even more competition.
With a flood of new construction now reaching completion, sellers are making a bold gamble.
Salaries would have to double Not going to happen
So make a low bid you can afford!!!
Sharpen your pencils…..The best deals go to the intrepid bidder.
How low can you go?
Agents be damned accept the low offer people let’s get this correction going!!!!!!!
Part of me wonders how much of price stability is prospective buyers just not placing an offer for a lower price.
Exactly!!!! Agents don’t want to /won’t go in with a low offer. They tell their clients it’s a fair price blah blah blah because they don’t want the market to stabilize (drop) to where it should be. Wish you could represent yourself and bypass the realtors.
Looks to me like a lot of the housing is owned by investors who do not have to sell.
Thousands of GTA Presales are approaching occupancy and Closings in the next 12 to 18 months.
When a spec townhome is $800k in crappy Langley still. You know the bottom hasn’t been reached.
Its a race to the bottom. No matter what you price your property at someone else will match it or undersell you within days. The buyers out there are few and far between and probably trading up or down. First time purchasers have disappeared and are not risking catching a fallen knife. Waiting for the market to improve and then sell is, lets say, a bit optimistic. Your more likely to see another 20% t0 40% fall. Some areas of the country are still rising but the crash coming in Toronto and Vancouver will spread as less cash coming from the large cities, will have a countrywide effect not just on house prices but general consumption. this fill force up Canadas unemployment rate and reduce the number of available buyers.
A perfect storm is brewing. Nobody’s building, nobody’s buying and nobody wants to sell. End game is clear: no work for the electricians, plumbers, roofers, … Which in turn will only accelerate the collapse of our economy. Crash incoming.
They will be back realizing that their home value decreased even more. Capitulation is a hard pill to swallow.
Eg. IPRO managements looted millions from Trusted Accounts! Over leveraged, things are broken etc. Some problems have surfaced some are lurking and only known to the privileged.
GTA as a place to live is not competitive globally. People will be paying for the mistakes for generations to come.