A new agent survey finds buyers pulling back and sellers adjusting as the spring market disappoints
Canada's spring housing market has arrived with considerably less momentum than anticipated. A new survey of more than 500 real estate agents across North America finds the season has missed the mark for many in the industry, with buyers retreating to the sidelines and sellers growing more flexible to close deals.
The Real Brokerage Inc. May 2026 Agent Survey found that 38% of agents said spring activity has been weaker than they expected at the start of the year, including 13% who described conditions as "much weaker."
Only 29% said the season has outperformed their initial outlook, while 33% said it has unfolded roughly as expected.
"The spring market has been slower than many agents anticipated at the start of the year, but we're seeing buyers and sellers adapt to market conditions," said Tamir Poleg, chairman and chief executive officer of Real.
"Buyers are taking a more measured approach to purchasing decisions, while sellers are increasingly willing to negotiate to get deals done."
Real's Agent Optimism Index, measuring agents' 12-month forward outlook on a 0-to-100 scale, slipped to 61.3 in May from 64.0 in April, though it held comfortably above the 50 threshold that signals a net positive outlook.
The Transaction Growth Index, which tracks home sales activity as reported by local agents, ticked up marginally to 51.5 from 50.6, also staying above the expansion line.
Affordability and uncertainty drive buyer hesitation
The survey's findings mirror the cautious tone that has taken hold across Canada's housing market as affordability pressures mount.
Affordability ranked as the top challenge for buyers in May, cited by 44% of agents surveyed.
Economic uncertainty, encompassing mortgage rate movements, equity market volatility, and geopolitical headlines, followed at 27%, with inventory concerns cited by 17%.
Among responding agents, 42% described their local market as favouring buyers, against 25% who saw sellers in control, with 33% characterising conditions as balanced.
Nearly 79% of agents said recent economic developments are moderately or significantly affecting clients' readiness to transact.
Those concerns are well-founded for Canadians in particular. A Ratehub.ca report found that housing affordability worsened in 11 of 13 major Canadian urban markets between January and February 2026, even as mortgage rates held largely flat.
The 2026 Demographia International Housing Affordability report, meanwhile, placed Canada's national housing affordability at a median multiple of 5.4, firmly in "severely unaffordable" territory.
Sellers pivot as concessions become the new normal
Buyer caution is reshaping seller behaviour in kind. The survey found 39% of agents reporting buyers are requesting seller concessions more frequently, while 36% said buyers are delaying home searches or trimming their budgets.
Sellers are responding: 39% of agents said their clients are becoming more willing to adjust pricing or offer concessions, closely mirroring the share of buyers seeking them.
A further 27% said sellers are hesitating to list amid ongoing uncertainty, while 16% reported some sellers are accelerating listings ahead of anticipated market changes. Just 24% of agents reported no meaningful shift in seller behaviour.
The data points to a market still finding its footing midway through 2026, with brokers and agents playing a critical role in bridging expectations on both sides of the transaction.
The survey drew responses from 507 agents in the United States and Canada between May 27 and June 5.
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