Canada’s Housing Market Forecast 2026

Canada’s home sales fell 1.9% in December 2025, with Toronto and Vancouver hitting 20‑year lows.

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Canada’s Housing Market Forecast 2026

Canadian real‑estate data released by the Canadian Real Estate Association (CREA) shows national home sales dropped 1.9 % in December 2025 compared with a year earlier, capping a season of lower interest rates and growing economic anxiety. Toronto recorded 62,433 sales – the lowest since 2000 – while Vancouver sold 23,800 homes, matching the volume seen during the 2008 crisis. Quebec City led gains, posting a 17 % year‑over‑year price increase as the Bank of Canada slashed its key rate by one percentage point in 2025. Senior economist Shaun Cathcart warns that 2026 may mirror last year’s caution, with heightened U.S. trade tensions and a still‑tight labour market dampening demand. Analysts anticipate a modest rebound toward spring, but many first‑time buyers remain priced out.

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Canadian real estatehousing market 2025Toronto salesVancouver marketBank of Canada rate cut