Ontario & B.C. Home Prices Dip — But It’s Temporary

For the first time this year, average home prices in both Ontario and British Columbia saw modest declines — with Ontario dropping by 2.9% and B.C. by 2.4%, according to fresh regional data.
But before hopeful buyers get too excited, experts are warning this may be more of a momentary exhale than a full-blown correction.

What’s Behind the Dip?

Analysts suggest that seasonal softness combined with higher holding costs and buyer hesitation over rates contributed to the brief cooldown in July.
However, this pullback comes despite persistent undersupply. Inventory levels in most urban centres remain below the 10-year average. While some sellers have reduced asking prices, competition for desirable properties is still intense in many cities.
“Don’t read too much into this dip,” said one Toronto-based realtor. “We’re still seeing multiple offers in key neighbourhoods — it’s just that the summer heatwave cooled foot traffic and urgency.”

Ontario vs. B.C. — Who’s Cooling Faster?

• Ontario’s dip is more noticeable in 905 suburbs and exurban towns, where affordability remains stretched even as interest rates slowly ease.
• B.C., particularly Metro Vancouver, saw a slight correction mostly in condo resale markets — while multi-family construction continues strong.

Why This May Not Last

Economists at major Canadian banks point to ongoing supply bottlenecks, immigration demand, and long-term rate relief in 2026 as reasons prices may climb again by fall.
Also worth noting: The number of new listings fell slightly, meaning sellers aren’t flooding the market.

What This Means for You

If you’re a buyer waiting on the sidelines, this price dip could offer a narrow window of negotiation leverage — especially on properties that have sat on the market longer.

“Even with this brief price dip, Ontario homebuyers are still paying 9% more per month than they did at the 2022 peak — largely due to elevated mortgage costs.”

For sellers, it may be time to reset expectations, but there’s no evidence yet of a crash or long-term slide.