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Investors have increased their expectations that interest rates will rise in December and beyond, with rates potentially reaching three per cent. The central bank recently held its key interest rate at 2.25 per cent for the seventh consecutive time. Following the announcement, market expectations for a 25-basis-point increase in December rose to nearly 90 per cent, up from roughly 60 per cent the previous day.

Expectations for additional increases next year have also grown. Investors are now largely anticipating at least one 25-basis-point hike in January, while some are betting on as many as three increases by the middle of the year. However, some analysts believe these expectations may be too aggressive, arguing that while some tightening could eventually be justified by economic data, current market pricing may be overstating the likely pace of increases.

The outlook is being influenced by concerns that inflation could spread to other parts of the economy. Ongoing international conflicts and trade tensions have increased uncertainty, while new tariffs and counter-tariffs could put additional pressure on prices. Although some earlier expectations of rising inflation were considered premature, the combination of renewed inflation concerns and changes in expectations for U.S. interest rates has strengthened the case for higher Canadian rates.

Markets are also increasingly pricing in the possibility of higher interest rates in the United States. Expectations for a 25-basis-point increase at the next U.S. meeting have risen significantly, while investors are fully pricing in one increase by December and assigning a substantial probability to another. Changes in the U.S. interest-rate outlook are important for Canada because monetary policy in the two countries is closely connected, influencing expectations for the direction of Canadian rates.

A rate increase could also be considered at the central bank’s October meeting, when an updated economic and inflation report is scheduled to be released. The latest policy statement indicated that inflation remains too high, that risks to higher inflation have increased, and that the two per cent inflation target will remain a key focus for future decisions. Markets currently see just over a 40 per cent chance of an October increase, while forecasts suggest rates could reach 2.75 per cent by the end of the year and three per cent in 2027.

Calgary’s housing market continued to see slower activity in August 2026, with both sales and new listings declining compared with the same period in 2025. Sales reached 1,660 units, down 16 per cent year over year, while new listings fell nearly 10 per cent to 3,141 units. The slowdown was not consistent across all price ranges, as homes priced above $1 million recorded sales gains, particularly among detached and semi-detached properties. Overall inventory stood at 6,509 units, while slower sales pushed the market to nearly four months of supply. Conditions varied considerably by property type, with apartment-style homes facing almost six months of supply compared with just over three months for lower-density detached homes. 

Detached and semi-detached properties continued to show relatively balanced market conditions and more stable pricing than higher-density housing. Detached home sales fell 12 per cent to 875 units, while new listings declined to 1,635 units, pushing supply above three months. The benchmark price for detached homes was $744,300, roughly unchanged from July and one per cent lower than last year. Semi-detached sales also eased, bringing year-to-date sales to 1,516 units, slightly below 2025 levels. Inventory remained nearly five per cent higher than last year, but prices stayed relatively stable, with the benchmark reaching $690,500, nearly one per cent higher than a year earlier.

Row housing continued to experience weaker demand, with sales contributing to a 15 per cent year-to-date decline. Additional new-home and rental supply has contributed to the reduced resale demand, while fewer new listings have helped prevent inventory from increasing further. Supply remained close to four months, although conditions differed by location. Prices declined across all areas, with the benchmark reaching $415,200 in August, nearly one per cent lower than July and five per cent below last year. Apartment-style condominiums remained the most oversupplied segment, with nearly six months of supply and a 26 per cent year-to-date decline in sales. The benchmark price fell to $295,400, down nearly one per cent from July and eight per cent from 2025, and almost 13 per cent below its August 2024 peak.

In surrounding communities, market conditions varied significantly. Airdrie recorded a 13 per cent year-to-date decline in sales, while new listings fell seven per cent, helping keep supply below four months despite elevated inventory. Its benchmark price declined to $508,800, down more than four per cent from a year earlier. Cochrane saw sales improve, contributing to a year-to-date increase of more than five per cent, while stronger sales reduced supply to just over three months. Despite the improved activity, its benchmark price fell two per cent year over year. Okotoks continued to experience limited new listings and relatively tight conditions, with just over two months of supply and a benchmark price of $608,400, nearly two per cent below last year. 

Chestermere experienced the most pronounced imbalance among the surrounding markets, as sales declined faster than new listings. The sales-to-new-listings ratio fell below 30 per cent, contributing to elevated inventory and nine months of supply. The higher level of available homes, combined with weaker sales, continued to put downward pressure on prices, which were more than one per cent below 2025 levels. Overall, the August market reflected a clear divide between relatively balanced lower-density housing and more challenging conditions in higher-density segments, where elevated supply and weaker demand continued to weigh on sales and prices.

Canada’s housing markets showed a mix of recovery, setbacks and stabilization in July, with conditions varying significantly across the country. Some markets showed signs of recovery or turnaround, while others continued to struggle with affordability, weak demand and elevated inventory. Home values remained below year-ago levels in several major markets, while others continued to see modest price growth or stabilization.

The Toronto area showed encouraging signs of recovery, recording its longest stretch of monthly resale gains in three years and a second consecutive monthly increase in benchmark prices. However, the market remains well below pre-pandemic activity, with prices still down from a year ago. The condo segment continues to face particular pressure, although declining new listings and a gradual reduction in inventory suggest the recent price gains could be sustained in some areas.

Montreal appears to be heading toward a controlled slowdown rather than a sharp decline. Home sales remain below last year’s levels, while price growth continues to moderate amid affordability challenges and slower population growth. Supply has increased, particularly for condos, helping bring the market closer to balance and easing upward pressure on prices.

Vancouver’s housing market continues to face significant challenges, with July bringing another decline in home resales and prices falling further from a year ago. Affordability concerns, weak buyer confidence, abundant inventory and slower population growth are keeping demand subdued, and further price declines may be needed before buyers return in greater numbers.

In Calgary, tighter supply is becoming a defining feature of the market as sellers remain hesitant to list their homes. Sales have softened, while prices continue to decline at a slower pace than earlier in the year. Condos remain the weakest segment, but overall conditions point to a cooling market where limited inventory could make it more difficult for buyers to find suitable properties.

When selling a home, staging the interior is often a priority, but the backyard deserves just as much attention, especially during the summer months. A clean, inviting, and well-presented outdoor space can make a strong impression on buyers and help them see the backyard as an extension of the home.

Start by giving the yard a thorough cleaning and decluttering. Wash the deck, windows, siding, and pathways, clear out gutters, and remove any pet waste. Put away toys, gardening tools, hoses, and other items that may make the space feel crowded or untidy.

Next, create a neutral and inviting environment by removing overly personal items and unique décor. The goal is to help buyers imagine themselves enjoying the space, rather than feeling like they are stepping into someone else's personal backyard.

Well-maintained landscaping can also make a big difference. Keep the lawn freshly mowed, garden beds weed-free, and trees and hedges neatly trimmed. A tidy, cared-for yard instantly feels more welcoming and gives buyers confidence that the outdoor space has been properly maintained.

Finally, make the backyard feel like a space buyers can enjoy and use. Add comfortable outdoor furniture, cushions, pillows, rugs, lighting, potted plants, or tasteful weather-resistant décor to define the space. A few pops of colour can add personality, but keeping the overall look neutral and uncluttered will appeal to the widest range of buyers.

Preparing a home for sale is about more than making it look attractive. Strategic improvements can address visible flaws, improve functionality and create a move-in-ready impression. Kitchens and bathrooms are often worthwhile areas to update, while smaller changes such as new hardware, lighting, paint and cohesive flooring can refresh a property without the cost of a major renovation. Storage areas, including closets, pantries and mudrooms, can also improve buyer perception by making a home feel more functional.

Not every renovation delivers a strong return. Highly personalized designs may appeal to one homeowner but limit the property's appeal to future buyers. Expensive finishes that exceed the standards of the surrounding neighbourhood can also fail to translate into a higher sale price. Features such as swimming pools may be particularly polarizing, with some buyers viewing them as an asset and others seeing them as a maintenance concern. Homeowners should therefore consider market expectations and comparable properties before committing to major upgrades.

The strongest renovation strategy balances personal enjoyment with future resale value. Homeowners can benefit from living in a property before undertaking major projects, particularly in areas such as the kitchen, where everyday use can reveal what actually needs to change. Restoring a more practical layout can also broaden the buyer pool; for example, converting an oversized bedroom back into two rooms may make a property more attractive to buyers seeking an additional bedroom. Ultimately, renovations are most effective when they improve appearance and functionality while remaining appropriate for the home and neighbourhood.

Canada’s housing market continued its gradual shift toward balance in July 2026, with national home sales increasing 0.5% from June and marking a fourth consecutive monthly gain. Despite the improvement, actual sales remained 5.3% below July 2025 levels. New listings declined 1.6% for a third straight month, bringing the national sales-to-new-listings ratio to 51.3%, closer to the long-term average of 54.7%. This suggests that supply and demand are moving toward more typical market conditions across much of the country.

Housing inventory also remained relatively stable, with 205,388 properties listed for sale at the end of July, just 0.6% higher than a year earlier and close to the long-term average. National inventory stood at 4.7 months; the lowest level recorded so far in 2026 and slightly below the long-term average of five months. While some regions remained closer to seller-friendly conditions, markets across the Prairies, Quebec, Atlantic Canada, Ontario and British Columbia have generally been moving toward more balanced conditions. Even areas that began the year in buyer-friendly territory have shown signs of returning closer to historical norms.

Home prices were largely stable during the month. The national MLS® Home Price Index edged up 0.1% from June, marking its first monthly increase since November 2024, while remaining 3.3% below July 2025 levels. The pace of annual price declines has been narrowing since the start of the year. The national average home price reached $674,819 in July, up 0.2% from the same month last year. Overall, the combination of steadier prices, moderating inventory levels and improving supply-demand balance points to a housing market that is gradually returning to more normal conditions.

Canada’s wildfire crisis is becoming impossible to view as a distant environmental story. With hundreds of fires burning across the country, from the Northwest Territories and Prairies to British Columbia, Ontario, Quebec and Labrador, the impact is being felt far beyond the flames. Smoke is affecting communities across Canada and making headlines around the world, but behind the statistics are families facing evacuations, damaged homes and disrupted lives.

For many Canadians, climate change is no longer an abstract issue. In Kelowna, British Columbia, major wildfires have forced residents to prepare for evacuation, welcome displaced families and watch anxiously as fires move toward neighbourhoods. Experiences like these demonstrate that climate-related risks are increasingly part of everyday life—and increasingly part of decisions about where Canadians choose to live.

That is also changing conversations in real estate. REALTORS® are hearing more questions about wildfire and flood risk, while homeowners are dealing with rising insurance costs and concerns about future coverage. The Canadian Climate Institute estimates that by 2030, as many as 750,000 new homes could be built in areas at high risk of flooding and wildfire, making climate resilience an increasingly important consideration for buyers, sellers and communities.

As these risks grow, REALTORS® have an important role to play in helping clients understand the questions that matter. That might include reviewing flood maps, considering wildfire-resilient features, or discussing how climate risks could affect insurance, maintenance costs and long-term property value. To support this evolving role, the Canadian Real Estate Association introduced the Canadian Certified Green Representative (CCGR) certification in 2025, providing practical knowledge related to climate resilience, environmental hazards, energy efficiency and sustainable housing.

Building safer and more resilient communities will require collaboration among governments, industry, communities and housing professionals. As Canadians increasingly consider climate risk alongside affordability, location and lifestyle, REALTORS® can help ensure clients have the knowledge and resources they need to make informed decisions about where they live, invest and build their futures.

British Columbia’s effort to address its growing stock of unsold condos is raising questions about whether the initiative is truly aimed at creating affordable housing or protecting the broader real estate market. Under the $1.45-billion plan, governments and private investors would purchase as many as 2,200 completed units and make them available through a rent-to-own model.

The initiative initially drew attention because it was announced with very few details as part of a broader government announcement. More information emerged a week later, when officials confirmed that both levels of government would contribute $150 million, putting $300 million in taxpayer funds toward the purchases. The remaining financing is expected to come from investors, making the structure similar to a comparable condo-buying initiative in Ontario.

The program comes as British Columbia faces a substantial inventory of completed condos that have yet to find buyers. Government and housing data show that thousands of completed units remain unsold across the province, with a large concentration in the Metro Vancouver area. However, the program is expected to focus mainly outside Vancouver, where condo prices are generally lower. Supporters say bulk purchases could secure discounts and create opportunities for households to enter the market without a traditional down payment.

Critics argue that purchasing a large share of the province’s unsold inventory could effectively establish a floor beneath declining condo prices. They question whether the units would actually be affordable for ordinary households, particularly if prices remain above $600,000 even after discounts. There are also concerns that the program could protect developers and lenders from losses associated with weak sales, while providing affordable housing to only a relatively small number of households.

The rent-to-own component has also attracted skepticism. Critics say the model may not necessarily lead to homeownership if participants remain unable to qualify for a mortgage once the rental period ends. At the same time, supporters of the broader intervention argue that stabilizing the condo market could prevent deeper problems for developers, lenders and the wider provincial economy. Ultimately, the debate centers on whether the program will meaningfully expand affordable homeownership or primarily prevent further declines in the housing market.

Calgary’s rapid population growth in recent years has helped drive strong demand for housing, but the resale market is now showing signs of moving toward more balanced conditions.

A recent analysis of population trends and housing activity found that Calgary experienced one of the highest population growth rates among major Canadian markets between 2023 and 2025, increasing by about 9 per cent. However, as the pace of growth begins to slow, pressure on the resale market has also eased.

The city’s sales-to-new-listings ratio, a key measure of housing demand compared with available supply, suggests a more balanced environment. A ratio in the mid-50 per cent range generally indicates that neither buyers nor sellers have a major advantage, marking a shift away from the highly competitive conditions seen in previous years.

Experts say the change reflects a return to more typical market conditions after a period of unusually strong demand and limited inventory. Increased housing supply, combined with steadier demand, has created more opportunities for buyers, particularly those entering the market for the first time.

Lower prices in some areas and improved negotiating power are helping attract more first-time buyers. However, conditions vary widely by neighbourhood and property type. Single-family homes in more affordable price ranges remain in high demand and limited supply, while condos and townhomes are seeing more available inventory, giving buyers additional choices.

Overall, Calgary’s housing market is transitioning from a period of rapid growth and intense competition toward a more stable environment, with different segments experiencing different levels of demand.

Calgary’s housing market continued its seasonal slowdown in July, with both sales and new listings declining from June as buyers and sellers adjusted to typical mid-summer conditions. A total of 1,904 homes changed hands during the month, down nine per cent from a year earlier, while 3,323 new listings represented a 15 per cent annual decline. The sales-to-new-listings ratio held steady at 57 per cent, reflecting a market that remains balanced overall despite softer activity.

 The city’s benchmark residential price eased to $569,200 in July, slipping slightly from June and sitting two per cent below last year’s level. Apartment condominiums continued to experience the sharpest correction, with benchmark prices falling more than eight per cent year over year as elevated inventory and a large pipeline of new apartment construction weighed on the market. Detached homes remained comparatively resilient, posting a modest annual decline of less than two per cent, with the largest price adjustments occurring in Calgary’s North East and North districts.

 According to the Calgary Real Estate Board, the shift in market conditions reflects the combined impact of several years of strong housing construction and a slowdown in international migration, particularly affecting higher-density housing. More than 17,000 apartment-style units remain under construction across the city, contributing to increased supply, softer rental conditions and continued downward pressure on condominium prices. Despite weaker demand this year, overall market activity remains stronger than levels experienced during the downturn between 2015 and 2019. 

Market conditions varied by property type. Detached and semi-detached homes continued to benefit from relatively balanced supply, although detached sales slipped to 1,012 units and months of supply approached three months. Semi-detached prices remained largely stable at $691,000, while row housing experienced growing signs of oversupply, with benchmark prices declining six per cent year over year to $418,500. Apartment condominiums remained firmly in buyers’ market territory, with nearly five months of supply and benchmark prices falling to $297,600, more than 13 per cent below their 2024 peak.

Canada’s housing market has been weaker than expected, with home sales and prices continuing to face pressure. Recent market updates indicate that affordability improvements have not yet been enough to bring buyers back in large numbers, as many remain cautious due to economic uncertainty, elevated mortgage rates, and slower income growth.

Home prices are expected to continue adjusting downward as demand remains soft. While some regions, including parts of the Prairies and Quebec, are showing more resilience, larger markets such as British Columbia and Ontario continue to experience historically low sales activity.

The slowdown is also affecting new construction, as builders respond to higher costs and rising unsold inventory. New housing starts are expected to decline further, particularly in condominium markets. Meanwhile, rental construction remains strong as developers shift focus toward purpose-built rental projects, which may help increase vacancy rates and slow rent growth.

Looking ahead, market conditions are expected to vary across Canada. Some regions may see gradual improvements in resale activity, while others continue to face challenges from slower population growth and economic uncertainty.

The broader economic outlook remains a key factor for the housing market. Ongoing global tensions, trade uncertainty, and cautious business investment are expected to limit economic growth in the near term. However, Western Canada is projected to show stronger performance compared with some other regions.

Overall, the housing market is expected to remain in a period of adjustment, with affordability, interest rates, economic conditions, and buyer confidence continuing to shape the path forward.

As housing affordability continues to challenge many Canadians, laneway homes are gaining attention as a potential solution for both younger buyers and older homeowners. These small, secondary homes built on existing residential properties can create additional living space, provide rental opportunities, and help families stay connected while maintaining independence.

For some families, laneway homes offer an alternative to purchasing an expensive starter home. Instead of searching for an affordable property in different cities, some buyers are turning to existing family properties as a way to create a home that fits their needs without the added costs of condominium fees or other restrictions.

The process of building a laneway home begins with understanding what is possible on the property. Homeowners must consider zoning rules, safety requirements, available space, utilities, and site conditions before moving into the design phase. Factors such as lot size, access, electrical lines, trees, and servicing requirements can all influence the final design and cost.

Construction timelines and expenses can vary depending on location, size, and design. In some cases, government incentives can help reduce costs and encourage homeowners to add more housing supply within existing neighbourhoods. However, the process can involve significant planning, permits, and coordination with builders and local authorities.

Beyond affordability, laneway homes are also becoming a way for families to support multigenerational living. Older homeowners can remain in neighbourhoods they love while creating space for adult children or future caregivers. At the same time, younger generations gain access to more attainable housing options.

As more communities adopt policies supporting additional housing units, laneway homes are becoming more common. While challenges remain around financing, appraisals, insurance, and resale value, these homes continue to provide a creative option for increasing housing supply and adapting existing neighbourhoods to changing family needs.