Royal Bank of Canada (RBC) recently released a special housing report that examines how trade uncertainties and other factors are impacting Canada’s housing market. It highlights regional trends, including declines in home resales in markets such as Toronto and Montreal, pressure on property values, and a rise in new listings that is shifting buyer leverage. 

For real estate professionals, understanding these developments is crucial in adapting strategies during these challenging times. Professionals will need to stay agile and informed to respond to evolving market dynamics, while recognizing that local conditions will vary.

Key Trends from the RBC Special Report

The report highlighted several important shifts.

• Declining Sales Activity: Sales have dropped; in regions like Toronto, home resales have dropped by as much as 29% seasonally adjusted between January and February, but declines are felt elsewhere.
• Pressure on Home Prices: The MLS Home Price Index (HPI) has shown notable declines, with Toronto’s composite index falling 1.5% month-over-month and 1.8% year-over-year. Similar softening is evident in other areas, including Vancouver and Fraser Valley.
• Increased Inventory and Buyer Leverage: A rise in property listings, particularly in certain locations like Vancouver, Fraser Valley, and Toronto, has expanded the inventory available. This heightened supply has shifted bargaining power to buyers, putting downward pressure on property values.

Regional Variations

Despite overall trends, regional differences remain. For example, Edmonton remained one of the more resilient markets, while Montreal experienced the largest drop in transactions in four years due to both trade war-related anxieties and severe winter storms.

Toronto

Home resales dropped by 29% seasonally adjusted from January to February 2025, for the biggest one‐month decline since the early pandemic period. The composite MLS Home Price Index (HPI) fell by 1.5% from January to February.

Montreal

Transactions decreased by an estimated 11% seasonally adjusted in February, the largest drop in four years.

Vancouver

Home resales fell by over 15% seasonally adjusted from January to February, with the MLS HPI slipping by about 1.1% year-over-year.

Calgary

Resale activity dipped roughly 12% seasonally adjusted from January to February, while the market remains somewhat balanced; Calgary’s MLS HPI shows a modest 0.9% increase on an annual basis.

Edmonton

Edmonton remains one of the country’s stronger markets, with prices continuing to rise steadily despite experiencing some effects of the broader slowdown in activity.

Strategies and Best Practices

While a constantly changing landscape can make things challenging, real estate professionals can follow some strategies and best practices, while making sure to stay current and rigorously research local market conditions before advising clients.

Stay Informed and Agile

Keeping up-to-date with market data and economic indicators is more critical than ever. Regularly review reports from reputable sources to understand how economic changes are impacting specific regions. This information will allow you to adjust your marketing and sales strategies promptly. More than ever, maintaining a network of other professionals can help you stay better informed. Consider finding an experienced mentor, to help you navigate the rapid changes.

Client Education and Transparent Communication

In uncertain economic climates, maintaining trust is paramount. Provide clients with clear explanations of current trends and potential risks linked to trade and tariff developments. Reinforce that while national trends offer guidance, local market nuances are equally important.

Emphasize Data-Driven Decision Making

Rely on the most up-to-date data and analytics when advising clients. Whether advising on listing prices or negotiating offers, using recent trends and insights from thought leaders can help validate your insights. However, remind clients that these trends can vary significantly from one neighbourhood to another.

Adapt Marketing Strategies

With increased inventory, competition can be tough. Highlight the unique value propositions of each property, such as quality features or location advantages. Professional staging, high-quality photography, and targeted digital marketing can help your listings stand out in a buyer-favored market.

Focus on Relationship Building

Market shifts can create opportunities to deepen client relationships. Regular check-ins, market updates, and informational seminars can position you as a trusted advisor. Encourage buyers to explore options now, while sellers may benefit from positioning their property correctly to maximize value in a fluctuating market. 

By maintaining regular contact and providing up‑to‑date information, you empower them to determine when the time is right to move forward. As they become more informed, they gain the confidence to act, and when they’re ready, your name is the one they trust to guide them through the process. 

While the RBC special report provides insights into the current state of Canada’s housing market and the impacts of trade tensions, local market research remains essential. Real estate professionals should use these general strategies as a foundation, adapting them to the specifics of their own markets. Staying flexible and maintaining open lines of communication with clients will be the most important key to successfully navigating these challenging times.