Why Real Estate Inventory Is Climbing Across Canada in 2025

What it means for buyers, sellers, and investors right now

Let’s talk about something we’re all noticing—there are a lot more homes for sale across Canada right now. If you’re scrolling listings and thinking, “Whoa, that’s a big shift,” you’re not alone. We’re seeing the highest inventory levels in years, and it’s having a ripple effect on everything from pricing and buyer confidence to how long properties sit on the market.

This isn’t just a random blip. It’s part of a bigger shift in the Canadian real estate landscape—and understanding why it’s happening can help you make smarter decisions, whether you’re buying, selling, or just keeping tabs on your property value.

What’s Behind the Spike in Listings?

Inventory is climbing for a few key reasons—and they’re all hitting at the same time:

1. Higher Interest Rates

Rates have shot up fast over the last couple of years. That means bigger mortgage payments, tougher approvals, and a shrinking pool of qualified buyers. Fewer people can afford to buy, which means more homes are sitting unsold.

Even investors are feeling the pinch. If the math no longer works on a rental, they’re listing instead of holding. This is a major reason we’re seeing more “For Sale” signs across the board.

2. Economic Uncertainty

With inflation, job losses in certain sectors, and a general “wait and see” vibe, a lot of buyers are hitting pause. People are nervous—and when confidence drops, so does demand.

3. New Builds Are Flooding the Market

A ton of projects that were delayed during the pandemic are now wrapping up—especially in cities like Toronto and Vancouver. That’s adding thousands of new units at once. Some buyers are even walking away from their pre-construction deals due to financing issues.

4. Changing Demographics and Immigration

We’ve had record population growth, but recent policy changes are slowing immigration and reducing the number of temporary residents. That means fewer new households forming—and less pressure on housing supply.

What We’re Seeing in the Cities

The numbers vary by region, but the trend is the same: more homes, more competition, and longer days on market.

Toronto

Inventory is way up—about 28% higher than last year. Detached homes and condos alike are sitting longer, and price cuts are becoming more common.

Vancouver

One of the hardest-hit markets for rising inventory. Listings are up nearly 40%, and many sellers are adjusting expectations as mortgage rates bite.

Calgary

This one’s interesting—after being red-hot, Calgary is cooling fast. Investors who bought during the boom are offloading now that their mortgage renewals are hitting.

Montreal

More balanced than the rest, but still seeing a 20% jump in listings since 2022. Demand hasn’t fallen off a cliff, but it’s no longer a seller’s dream.

Ottawa

Here in Ottawa, the market has shifted to competitive AND cautious. Active listings are climbing steadily, especially in the suburbs where mortgage renewals are starting to bite. We’re seeing more price reductions and longer days on market particularly in detached homes that have been listed for 3 - 6 months. Condos downtown are also sitting longer as affordability challenges keep first-time buyers on the sidelines. That said, buyers here are smart and watching closely, which means well-priced homes still move, just not at warp speed like we saw during the pandemic peak. The vibe? It’s leaning toward a buyer’s market as we head deeper into the year. I predict BIG price drops heading into Winter and 2026

Urban vs Suburban Breakdown

The divide between city cores and the suburbs is getting sharper:

• Urban: Condos and townhomes are stacking up in city centres. High borrowing costs and downtown rents are keeping first-time buyers cautious.

• Suburban/Rural: The post-pandemic rush to the burbs has cooled. Higher costs and rate renewals are pushing some families to sell, especially in outer-ring areas.

Seller Motivation Has Shifted

Not everyone listing right now is looking to cash in—many are listing out of necessity:

• Downsizing for retirement or affordability

• Offloading underperforming investments

• Financial stress from renewals at higher rates

• Major life changes like divorce or job moves

There’s a clear shift from “I want to sell” to “I need to sell.”

And here’s the problem: a lot of sellers are still pricing based on last year’s peak. Buyers, meanwhile, aren’t playing that game anymore. They’re more cautious, selective, and less likely to offer over asking unless the home really stands out.

Not Every Market is Flooded

Some places are still holding strong:

• Montreal & Quebec: Less investor activity, more stable buyers.

• Atlantic Canada: Migration and affordability are keeping demand steady.

• Victoria & parts of BC’s interior: Limited supply and steady retirement demand are keeping things in check.

These regions didn’t overbuild or overheat quite as much, and it shows.

What This Means for Buyers

If you’ve been sitting on the sidelines, this might be your moment.

✅ More options: No more racing through open houses.
✅ More leverage: Sellers are more open to negotiations and concessions.
✅ More time: You can actually sleep on it (imagine that).

But keep your head on straight:

⚠️ Prices may still adjust downward. Don’t stretch too far on something that might lose value.
⚠️ Watch the appraisal. Some deals are falling apart if the bank doesn’t agree on price.
⚠️ Rental markets are shifting. Investors—know your numbers before jumping in.

What This Means for Sellers

This is not the time to get greedy.

• Price it right from the start.

• Be flexible.

• Understand the competition—your listing is one of many.

If you’re motivated and realistic, you can still sell. But if you’re chasing last year’s highs, the market might leave you behind.

Final Thoughts

Inventory is up. Interest rates are high. Buyers are cautious. Sellers are recalibrating.

This isn’t a crash—it’s a rebalancing. And while that can be frustrating, it also opens up new opportunities if you know where to look.

Whether you’re buying your first place, considering selling, or just trying to make sense of what’s going on, the key is staying informed and making decisions based on today’s reality—not yesterday’s market hype.

Questions about your market? Curious how your neighbourhood compares? Let’s talk.

Drop me a message anytime, or hit reply if you’re reading this via my newsletter.