Calgary (Rajeev Sharma): Canada’s real estate market, once one of the hottest in the world, is facing mounting pressure as sellers increasingly pull their listings, reflecting deep uncertainty and fears of a broader capital flight crisis. Realtors across Toronto, Vancouver, and Calgary report a growing trend of homeowners withdrawing properties from the market after receiving lower-than-expected offers. “Sellers are reluctant to accept a 10–15% dip in valuation compared to peak prices,” said a Vancouver-based broker. “Many prefer to wait it out rather than sell at a loss.”
The trend is compounded by capital flight, with foreign investors redirecting funds to the U.S. and other markets that offer more stable returns. According to the Bank of Canada, foreign ownership of Canadian housing stock has slipped over the past two years, while international capital inflows dropped by nearly 20% in 2024. High interest rates, the foreign buyer ban (extended until 2027), and stricter money-laundering rules are all contributing to the exodus of global investors.
While supply is tightening due to delistings, affordability remains out of reach for most Canadians. The average home price in July 2025 was $694,000, according to the Canadian Real Estate Association (CREA), still well above what middle-income households can afford. “Buyers are waiting for a correction, sellers are waiting for a rebound, it’s a standoff,” noted Toronto economist David Rosenberg.
Economists warn that if capital continues to leave the country and property markets remain stagnant, ripple effects could hit construction jobs, bank lending, and consumer spending. Housing makes up nearly 10% of Canada’s GDP, meaning prolonged stagnation could weigh heavily on economic growth. “The real danger isn’t just falling home prices, it’s the confidence shock,” explained housing policy expert Jean François Perrault. “If investors stop seeing Canada as a safe place to park money, we’ll feel it across the economy.
