Canada’s housing market is showing signs of stabilization, but hesitation continues to shape buyer and seller behavior. With sales improving modestly, inventories remaining high, and prices largely flat, agents are adopting creative strategies to keep transactions moving. Economists, such as BMO’s Robert Kavcic, point to sluggish job growth and elevated mortgage rates as key factors dampening confidence. In markets like Southern Ontario, where condo inventories are surging and prices continue to slip, buyers are wary of making a move until they feel conditions will improve.
In cities like Guelph, some buyers are using the slowdown to trade up, but even then, deals often involve layered conditions to manage risk. One young couple recently secured a detached home after adding a clause making their purchase contingent on selling their current property, a strategy that has become common. To safeguard sellers, these agreements frequently include escape clauses allowing them to accept competing offers if buyers cannot waive conditions quickly. While these tactics create added complexity, they are giving cautious buyers the breathing room they need to make major decisions without the panic-driven urgency that defined past market highs.
For sellers, honesty has become a valuable commodity. Agents are emphasizing realistic pricing over wishful thinking, advising clients to accept market realities to avoid watching their listings stagnate. In several cases, homes that languished for months at inflated prices have sold quickly after significant price corrections. Meanwhile, some developers are slashing prices on partially built or newly finished homes to encourage sales, recognizing that buyers today want tangible properties they can walk through before committing to a purchase.
Despite the challenges, opportunities still exist for those willing to adapt. The combination of increased choice, negotiable terms, and flexible pricing has created an environment where well-informed buyers can secure favorable deals. For agents and sellers, creativity and transparency have become essential tools for navigating a housing market defined not by frenzy, but by careful calculation and shifting priorities.