Canada Housing Market | 2026 Home Prices

Canadian Home Sales End Year on a Soft Note as Regional Gaps Widen

Home resales across Canada slowed again in December, capping off a year marked by stalled momentum and uneven recoveries. National home sales declined 2.7% month over month, bringing total transactions for 2025 down 1.9% from 2024, according to the Canadian Real Estate Association (CREA). While harsh winter weather played a role in some regions, affordability pressures, economic uncertainty, and a softer job market were the bigger forces keeping buyers sidelined.

What began as an early rebound, fuelled by rate cuts earlier in the year, faded by spring as trade tensions and confidence shocks hit demand, particularly in BC and Ontario. Inventory rose sharply in these regions, giving buyers more leverage and pushing prices lower in markets such as Toronto, Vancouver, and Calgary. By contrast, more affordable markets across the Prairies, Quebec, and Atlantic Canada continued to post price gains, supported by tighter supply-demand dynamics.

Nationally, the MLS Home Price Index ended December down 4% year over year, with condos and townhomes posting the largest declines. Average home prices, however, were largely flat, masking underlying softness in higher-cost regions. Looking ahead, CREA expects sales to pick up in the spring as pent-up demand re-emerges, but outcomes in 2026 are likely to remain highly regional, shaped by local affordability, supply conditions, and economic confidence.

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Canadian Housing Market Highlights

The average selling price of a home in Canada decreased by 4% year-over-year to $660,300 in December.
The average selling price of a single-family home in Canada decreased by 3.6% year-over-year to $733,300 in December.
The average selling price of a townhouse/multiplex in Canada decreased by 5.1% year-over-year to $602,300 in December.
The average selling price of a condo in Canada decreased by 5.5% year-over-year to $469,300 in December.
The average rent in Canada decreased by 2.3% year-over-year to $2,060 for December.
January 21, 2026: Today’s lowest mortgage rate in Canada is for a 5-year fixed.

Data from the Canadian Real Estate Association (CREA) indicates that the benchmark price of resale residential homes sold across Canada in December was $660,300, and it decreased by 4% compared to a year ago.

CREA also reported a sales-to-new-listings ratio (SNLR) of 52%, indicating Balanced market conditions nationally for December.

Composite Home Prices

The average selling price of a home in Canada was $660,300 for the month of December, that’s decreased by 0.7% month over month. On a year-over-year basis, Canadian home prices have decreased 4% year-over-year.

Single-family Home Prices

The average selling price of a single-family home in Canada was $733,300 for the month of December, that’s decreased by 0.7% month over month. On a year-over-year basis, single-family home prices in Canada have decreased by 3.6% year-over-year.

Townhouse and Multiplex Prices

The average selling price of a townhouse in Canada was $602,300 for the month of December, that’s decreased by 0.9% month over month. On a year-over-year basis, the price of a townhouse in Canada has decreased by 5.1% year-over-year.

Condo Prices

The average selling price of a condo in Canada was $469,300 for the month of December, that’s decreased by 0.8% month over month. On a year-over-year basis, the price of a condo in Canada has decreased 5.5% year-over-year.

Transactions – Number of Sales

The number of sales in Canada was 39,134 during December, that’s decreased by 2.7% month over month. On a year-over-year basis, sales in Canada have decreased by 7.4% year-over-year.

New Listings

The number of new listings in Canada was 75,011 during December, that’s decreased by 2% month over month. On a year-over-year basis, new listings in Canada have increased by 0.8% year-over-year.

Real Estate Market

The sales-to-new-listings ratio (SNLR) in Canada was 52% during December, indicating a Balanced. On a monthly basis, that’s decreased by 0.8% month over month. Canada’s yearly sales to new listings ratio has decreased by 8.1% year-over-year.

The sales-to-new-listings ratio (SNLR) measures the number of home sales compared to new listings. An SNLR below 40% indicates a buyer’s market, where buyers hold the upper hand and greater negotiating power. An SNLR between 40% and 60% is a balanced market, while an SNLR of over 60% is considered a seller’s market.

Annual Changes in Composite Home Prices by Province

Annual Changes to the National Composite Home Prices

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National Rent Outlook Shows December Slide as Supply Gains Shift the Market Going Into 2026

Rental markets across Canada softened further in December, with average asking rents falling to $2,060, the lowest level in about two and a half years, according to data from Rentals.ca and Urbanation. Rents declined year over year for the 15th consecutive month, driven mainly by continued weakness in secondary-market units such as condos and houses, while purpose-built rentals proved more resilient. December also marked one of the slowest months for rental demand in recent years, as affordability pressures, slower population inflows, and a wave of new apartment completions combined to ease competition in most major markets, including Vancouver and Toronto, where rents fell to their lowest levels since early 2022.

Looking ahead to 2026, rental experts expect near-term softness to persist before conditions stabilize later in the year, as demand gradually recovers and the pace of new supply normalizes. While rents are unlikely to retrace the sharp gains seen earlier in the decade, markets with strong job growth and limited new construction could see renewed upward pressure, leaving the national picture defined by modest rent declines early on and a more balanced, uneven recovery as the year progresses.