Canada’s Housing Market Is Moving Toward Balance Canada’s housing market in early 2026 is slowing but stabilising, as rising inventory and moderating prices bring the market closer to balance. While overall activity has softened, this shift is creating more opportunities for buyers who were previously priced out. Home sales have declined year-on-year, while average prices have eased slightly. At the same time, inventory has risen to around 140,000 listings, with nearly five months of supply, giving buyers more options and reducing urgency across the market. Toronto Toronto is showing mixed signals. Sales remain relatively steady, but new listings have dropped sharply, tightening supply in certain segments. Prices continue to adjust, although strong underlying demand suggests potential recovery if inventory tightens further. Vancouver In Vancouver, higher inventory continues to put pressure on the market. Sales activity remains below historical averages, while benchmark prices have declined as supply outweighs demand. This reflects more cautious buyer sentiment, particularly in higher-priced segments. Overall, Canada’s housing market is transitioning into a more balanced phase. With improved supply, softer pricing, and steady demand, the current environment offers greater flexibility and entry opportunities for buyers and long-term investors. Quebec Source: GVR Residential Market Report - January 2026 Download to see insights from other country marketsDownload

Canada   Canada’s housing market started 2026 with softer sales and more balanced supply compared to prior years. Total home sales in 2025 fell 1.9% from 2024, and the MLS® Home Price Index was down about 4% year-over-year by year-end.   CREA forecasts a modest rebound in 2026, with sales expected to rise 5–7% and average prices reaching around $690,000 to $700,000. The market remains stable, supported by improved affordability and steady buyer confidence.   Toronto   GTA REALTORS® reported 3,082 home sales in January 2026, down 19.3 per cent compared to January 2025, while new listings totaled 10,774, a 13.3 per cent year-over-year decline. On a seasonally adjusted basis, sales decreased month-over-month as listings edged slightly higher.   The MLS® HPI Composite benchmark fell eight per cent year-over-year, with the average selling price at $973,289, down 6.5 per cent from January 2025. TRREB’s 2026 Market Outlook and Year in Review Report also highlights broader trends across the GTA’s residential and commercial real estate markets.   Source: https://trreb.ca/wp-content/files/market-stats/market-watch/mw2601.pdf    Vancouver   Metro Vancouver home sales on the MLS® dropped 28.7% year-over-year in January 2026 to 1,107 units, well below the 10-year average. New listings declined 7.3% to 5,157 but remained above historical norms, pushing active listings up nearly 10% to 12,628.   The sales-to-active listings ratio stood at 9.1%, signaling continued downward pressure on prices. The MLS® Home Price Index benchmark fell 5.7% to $1,101,900. Detached, apartment, and attached home sales and prices all saw double-digit declines compared to January 2025. GVR expects 2026 to mirror last year with subdued sales, high inventory, and stable prices amid ongoing economic uncertainty.   Source: https://members.gvrealtors.ca/news/GVR-Stats-Package-January-2026.pdf   Quebec   Source: https://apciqca-152af.kxcdn.com/wp-content/uploads/sites/4/2026/02/stats-202601-en-1.pdf    Download to see insights from other country marketsDownload

Canada’s real estate market closed 2025 in a more balanced and stable position, supported by earlier interest rate cuts, easing inflation, and gradually improving buyer confidence. Across major cities, conditions varied but remained resilient: the GTA saw steady demand within a well-supplied market, Vancouver experienced elevated inventory with limited price pressure, and Montreal continued to outperform, driven by favourable financing conditions and population growth. Overall, the national market ended the year on solid footing, setting a measured tone for 2026. At the city level, Toronto closed December 2025 with lower year-on-year sales and prices, but rising listings and improving affordability are positioning the market for a potential recovery once economic confidencestrengthens. Vancouver remained firmly buyer-friendly, with high inventory levels and softer sales keeping conditions balanced-to-soft. Quebec continued to show resilience, with stable transaction activity and price growth supported by strong demand for multi-unit and urban housing. Taken together, Canada’s housing market is entering 2026with greater stability, improving affordability trends, and pent-up demand that could support activity as confidence returns. Download to see insights from other country marketsDownload