According to new national data, over 1 in 5 property listings were canceled in July 2025—the highest volume ever recorded for this time of year. It’s a startling trend that reflects the growing imbalance between supply and demand, as homeowners lose confidence, inventory swells, and buyers sit on the sidelines, waiting for the market to bottom out.
If you're wondering what this means for the market—and for investors—Lendworth has you covered. Let’s unpack the trend.
🚨 Listing Cancellations Surge to 22.5%: A Sign of Capitulation?
The Canadian Real Estate Association (CREA) reports that approximately 22.5% of real estate listings were canceled in July 2025—meaning more than 1 in 5 sellers chose to pull their homes off the market. While cancellation rates were slightly higher in 2022, the absolute number of canceled listings this year is over 25% higher, setting a new all-time record for July.
By year-end, we may see the largest wave of canceled listings in Canadian history.
What’s even more surprising? This cancellation rate is higher than the peaks seen during the 2008 financial crisis and even the height of the COVID pandemic in 2020.
🏘️ Too Much Supply, Not Enough Buyers
So, what’s driving sellers to back away in record numbers?
A few major factors:
- Soaring inventory levels: Completed new builds are hitting the market at the same time resale listings are flooding in.
- Affordability fatigue: Even with interest rates down from their peak, borrowing costs are still elevated, sidelining buyers.
- Price resistance: Sellers are refusing—or unable—to lower asking prices further, despite declining demand.
- Rate roulette: Many are gambling on a future with lower rates, choosing to “wait it out” rather than accept a lower sale today.
The result? Listings are sitting longer, competition is rising, and many sellers are choosing to cancel rather than cut prices further.
🔄 The "Relist Later" Gamble: A Losing Strategy?
Many sellers believe they can simply wait out the market, relisting once the Bank of Canada cuts rates further. But that logic hasn’t worked well over the past 18 months.
“Inventory is climbing, not falling. So those who canceled and relisted later faced even more competition,” says a senior analyst from National Bank.
The irony? As more people adopt this wait-and-see approach, they’re fueling the very oversupply that continues to erode seller leverage. Meanwhile, buyers with pre-approvals in hand are gaining more power to negotiate—and getting picky.
🧱 Builders Are Still Delivering: Completions Keep Coming
Adding fuel to the fire is the ongoing wave of pre-construction completions—condos and homes purchased during the pandemic’s low-rate frenzy are now finishing construction. Buyers who locked in prices in 2020-2022 are now facing higher mortgage rates, tough lending conditions, and some are being forced to list… or walk away.
This is pushing more inventory into an already oversupplied market.
At Lendworth, we’ve seen firsthand how this supply shock is impacting both borrowers and investors—and we’re adjusting our underwriting to reflect these liquidity risks.
📊 What This Means for the Market (And For You)
Let’s be clear: a high cancellation rate is not a sign of strength. It’s typically a precursor to deeper price corrections, especially when paired with rising inventory and soft buyer demand.
But here’s the upside:
✅ First-time buyers are seeing better prices and more negotiating power.
✅ Investors who understand the market cycle can find value in distressed listings or alternative lending opportunities.
✅ Lenders like Lendworth are stepping in where banks pull back—offering flexible, equity-based solutions for borrowers with tight timelines or refinancing needs.
💼 How Lendworth Is Navigating This Market
At Lendworth Mortgage Investment Corporation, we don’t just observe the market—we build portfolios that outperform through it.
Our strategy focuses on:
- Residential properties with strong liquidity profiles
- Low loan-to-value (LTV) ratios averaging ~60%
- Short-term, interest-only mortgages with clear exit strategies
- 9%+ targeted annual returns for our investors
In a market where many sellers are backing away and institutions are tightening, we remain active, selective, and opportunistic.
📍 Want to learn how we protect capital and capitalize on market dislocation?
Visit www.lendworth.ca or contact us at info@lendworth.ca to discover how you can invest alongside experienced lenders with boots on the ground.