The spring real estate market in Canada is showing mixed results so far in 2026, with one clear trend emerging: more sellers are entering the market. According to a new report by RBC Economics, new listings increased from March to April in most major markets across the country.
Increased Supply Gives Buyers More Options
While many major markets, including Calgary, Edmonton, and Toronto, saw month-over-month growth in home sales, overall activity in many regions has been weaker compared to the same period last year. RBC noted that buyers in Vancouver and Toronto continue to have strong negotiating power due to increased choice, although affordability challenges persist despite recent price corrections.
Supply in Ottawa and Montreal reached record levels in April, further tilting the balance toward buyers. In Ottawa, one of the hottest housing markets in recent years, sales declined by two percent compared to April 2025, while new listings surged by more than 19 percent. The MLS Home Price Index in Ottawa was down about one percent year over year.
Mixed Regional Performance
Resale markets in Quebec, the Prairies, and Atlantic Canada showed more balance between buyer demand and new listings. However, even in these regions, the spring market did not experience a meaningful increase in demand, according to RBC. Buyer caution remains a key factor, driven by uncertainty in the job market and the broader economy. Rising fuel prices are also weighing on consumer confidence.
Year over year, most major markets recorded sales declines in April, with Toronto being a notable exception. In Toronto, home resales grew by seven percent compared to the same month in 2025. New listings in the city fell by more than nine percent year over year. Despite this, the Toronto MLS Home Price Index declined for the 25th consecutive month, dropping by 6.5 percent year over year.
Outlook for the Spring Market
RBC forecasts that the spring market will likely continue to see mixed results until economic uncertainty subsides. The report highlights that buyers remain cautious, and while more listings are providing additional options, demand has not picked up significantly. The combination of affordability issues, economic headwinds, and a lack of confidence is expected to keep the market in a state of flux for the near term.
