More Canadian real estate sellers are pulling listings, as market conditions loosen. Canadian Real Estate Association (CREA) data shows the share of canceled listings climbed in July, continuing an upward trend amid rising inventory. The elevated share of cancellations, combined with higher inventory, has pushed volumes to a record high. A wave of new completions is compounding pressure, making tighter conditions less likely—and sellers more likely to contribute to market capitulation.
Canceled Canadian Real Estate Listings Approach Record Share, But The Volume Is Already There
Canadian real estate sellers have been canceling their listings at an unusually high rate in recent months. A national NBF analysis shows that over 1 in 5 listings (~22.5%) were canceled in July. The share has been steadily climbing since 2023, and while it has yet to print a record, it’s now approaching previous extremes.
However, the volume of canceled listings has reached a new high for July. Back in mid-2022, the share of canceled listings was higher, but the volume is over 25% higher today as much more inventory languishes on the market. With the market’s current pace, this is on track to exceed the record by year-end.
Canadian Real Estate Listing Cancellation Rate Eclipses Prior Recession
The current cancellation rate is much higher than past recessionary peaks. During the 2008 financial crisis, cancellations peaked at less than 18% of listings. Even in 2020, at the height of pandemic uncertainty, cancellations climbed sharply—but not as much as we’ve seen in recent months.
A few major trends are behind the surge in listing cancellations—including a lack of qualified demand, affordability, and resistance (or ability) to further slash prices. It’s not uncommon to find sellers under the impression that the downturn is just a temporary phase, planning to re-list in a few months when lower rates stimulate more buying. That gamble over the past few years hasn’t exactly paid off, as inventory climbs higher and those relisting face even more competition.
With a flood of new construction now reaching completion, sellers are making a bold gamble.
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