Is Now a Good Time to Buy a Home in Canada?
Like many Canadians, you’re not alone if you struggle to answer whether now is a good time to buy a home. The past few years have been anything but normal for Canada’s housing market, with rapid price growth, aggressive interest rate hikes, and shifting buyer confidence all converging. By the end of 2025, as interest rates came down, the market continued to cool from its pandemic highs. Sales activity and home prices remain uneven across regions in Canada, and affordability remains a key concern for many.
Looking ahead, as interest rates stabilize and borrowing costs ease compared to recent peaks, many Canadians are weighing whether these improved mortgage conditions are enough to offset still record-high home values. To help you decide whether buying right now makes sense, we break down the most important factors that prospective homebuyers should consider.
Key Takeaways
- The best time to buy often depends on regional market trends and seasonal patterns.
- Your financial situation and long-term plans are crucial in determining if now is the right time to buy.
- Researching and connecting with professionals can help ensure you get a great deal on your home purchase.
Market Considerations for First-Time Home Buyers
Buying a home is a significant commitment and depends on your budget, job stability, and creditworthiness. If you’re considering buying a home in 2026, here are key market conditions to consider when deciding whether to proceed.
#1. What Do Interest Rates Look Like?
By the end of 2025, the Bank of Canada’s key policy rate had decreased by 100 basis points to 2.25%. Heading into 2026, most forecasts expect the Boc to hold the policy rate steady as inflation remains close to target and economic growth remains uncertain. For homebuyers, this matters since even small changes in mortgage rates can significantly affect mortgage payments and total interest costs over the life of a loan.
If rates remain relatively unchanged, affordability gradually improves as incomes catch up. If inflation reaccelerates or economic conditions shift, rates could rise again, pushing borrowing costs higher. While perfectly timing the market is impossible, buying when rates are stable rather than increasing sharply can reduce one of the biggest unknowns in the homebuying equation.
#2. Will Home Prices Continue Rising?
Home prices are no longer moving in a single direction across Canada. Local housing market supply and demand are increasingly shaping price trends rather than broad national momentum. Some regions continue to see modest price gains driven by limited housing supply and steady population growth, while others, particularly higher-priced markets, are experiencing flat or slightly declining values as affordability constraints weigh on demand.
Compared to a few years ago, bidding wars are less common, and buyers generally have more room to negotiate. Sellers are facing a more selective pool of purchasers, and homes are taking longer to sell in many areas. Canada’s ongoing housing shortage continues to support current home prices, even as the market cools. With new supply failing to keep pace with long-term demand, a sharp national price correction remains unlikely.
The bigger challenge for most buyers is not rapid price growth, but the fact that home values remain well above pre-pandemic levels. Even in calmer markets, affordability remains a stretch for many prospective buyers.
#3. Is It a Seller’s Market?
A seller’s market occurs when demand outpaces supply, giving sellers more leverage in negotiations. In technical terms, this is usually defined by a sales-to-new-listings ratio (SNLR) of 60% or higher, meaning homes are selling faster than new listings are coming to market. In those conditions, properties tend to sell quickly, often with fewer conditions, and buyers have less room to negotiate.
Canada’s housing market currently appears more mixed, with conditions shifting from city to city and even from neighbourhood to neighbourhood. Many regions are closer to a balanced market, where neither buyers nor sellers have a clear upper hand. Some lower-supply markets still lean toward sellers, particularly where population growth remains strong, and listings are scarce. Other areas, especially higher-priced cities, are shifting to buyer’s markets with slower sales, longer listing times, and more conditional offers.
#4. How Fast Are Homes Selling?
Homes are no longer selling at the breakneck pace seen during the pandemic boom, but they are also not sitting idle in most areas. Sales speeds have mostly normalized, especially in major cities where buyers are more price-sensitive and financing costs remain a factor. In many markets, properties are taking longer to sell, giving buyers more time to view homes, arrange financing, and include conditions.
Canada’s underlying housing shortage continues to influence how quickly homes sell, even in slow markets. Entry-level and mid-range homes tend to move faster than higher-priced properties, since they attract a larger pool of buyers.
Is Now a Good Time to Buy?
Buying a home right now still comes with challenges. Home prices remain elevated even though they are coming down in many markets. Mortgage rates are below recent peaks; however, they remain higher than many buyers are accustomed to, and stress-test requirements can be a barrier to homeownership. As a result, affordability and mortgage qualification remain major hurdles, especially for first-time buyers and households with tighter budgets.
Buying a home is no longer just about waiting for rates or home prices to fall. For many financially prepared buyers, purchasing now lets you start building equity immediately rather than sitting on the sidelines. Over time, home equity can strengthen your net worth and provide financial flexibility.
Now may be a good time to buy if you have strong credit, a stable income, enough saved for a downpayment, and a mortgage payment you can comfortably afford even if market conditions change. It also helps if you plan to stay in the home for several years, giving your purchase time to work for you rather than relying on short-term market moves.
Another factor to consider is market dynamics. With fewer bidding wars and more price-sensitive buyers, many markets offer better negotiating conditions than they did a few years ago. While no one can predict precisely where rates or prices will go next, a return of stronger buyer demand could quickly tighten conditions again, especially if borrowing costs ease further or confidence improves.
How Important Is Seasonality When Buying a Home?
The time of year can play a meaningful role in the homebuying process. Canada’s housing market tends to follow a seasonal pattern, with shifts in supply and buyer demand influencing both the number of homes listed and price movements.
Historically, home sales increase in the spring and summer, when more properties come to market and buyer activity picks up. That higher demand can lead to faster sales and firmer prices. Activity usually slows in the fall and winter, as fewer homes are listed and fewer buyers are actively searching.
For buyers focused on finding value, the slower fall and winter months can offer better opportunities to negotiate, as competition tends to ease. Spring and summer, on the other hand, are typically more competitive, with stronger demand putting upward pressure on prices. While seasonality should not be the only factor in your decision, it can influence both pricing and leverage, depending on when you buy.
Buying a Home in the Winter
Winter is often overlooked by homebuyers, mainly due to the colder weather and the holiday season. Fewer people are willing to attend showings in harsh conditions, and many buyers pause their search as family commitments and travel take priority.
With fewer active buyers, competition typically eases, giving purchasers more room to negotiate on price and terms. Sellers who list during the winter are often more motivated, whether due to job changes, financial timing, or personal circumstances, creating opportunities for well-prepared buyers.
There are trade-offs to consider. Fewer listings usually mean fewer choices, and winter conditions can make it harder to fully assess a property. Snow and ice may limit the visibility of roofs, yards, or exterior features during home inspections. For buyers who value negotiation leverage over selection, winter can be a strategic time to buy.
Buying a Home in the Spring
Spring is typically the busiest season in the housing market. More homes are listed, giving buyers a wider range of options and making it easier to compare properties. Improved weather conditions also enhance a home’s curb appeal and enable buyers and home inspectors to more accurately assess exterior features such as roofs, foundations, and yards.
The downside is competition. Spring often brings a surge of buyers back into the market, which can lead to multiple offers, quicker decision-making, and less negotiating room. In hotter markets, that competition can push prices higher than they might be at other times of the year. For buyers who value choice over leverage, spring can be appealing, but it often requires a clear budget, strong financing, and a willingness to act quickly.
Buying a home in the Summer
The summer months often carry the momentum of the spring market, with higher inventory levels and steady buyer demand. Warmer weather makes it easier to attend showings, and the abundance of open houses allows buyers to view multiple properties in a short period.
Early summer often mirrors the spring market, with intense competition, limited negotiating room, and the potential for bidding wars. Many families are motivated to buy during this period to move and settle in before the school year begins, which increases buyer demand.
As summer progresses, conditions often begin to shift. Late summer can bring a more balanced market, with fewer competing buyers and slightly more flexibility in negotiations. Sellers who want to close before activity slows in the fall may be more motivated, creating better opportunities for prepared buyers.
Buying a Home in the Fall
As the market moves into fall, conditions often begin to shift in favour of buyers. The intensity of the spring and summer buying season typically eases, and sellers who did not secure a sale earlier in the year may be more open to negotiating on price or terms before activity slows further in the winter.
Fall often offers a solid balance of inventory and more realistic pricing compared to peak seasons. Weather conditions generally remain suitable for exterior inspections, and as the season progresses, buyers can gain additional leverage as competition continues to thin out.
The main trade-off is timing. As winter approaches, fewer new listings tend to come to market, which can reduce choice. For buyers who value negotiation leverage over having the widest selection, fall can be one of the most practical times of year to buy.
How to Research Market Trends to Get a Good Price On Your Home
Understanding how to research and interpret market trends is essential for a buyer to secure a deal. Here are some strategies to help you navigate the housing market.
- Monitor online news sources: You can find information on the housing market through media and news sites, real estate websites, and even blogs focused on the housing market. Google allows you to create free Google Alerts that notify you when a page matching your keywords appears in its search engine.
- Social media: Following real estate agents, brokers, agencies, and experts can help you stay up to date on the latest market trends. However, ensure you follow credible sources so the information you receive is factual.
- Monitor mortgage rates: Rates are constantly changing, which can significantly impact your purchasing power and ability to qualify for a mortgage. Keeping a close eye on rates and monitoring the trends and patterns the market cycles through can help you identify the most advantageous time to enter the market.
- Track home prices and the market: Regularly check your area’s home prices on local real estate board websites or CREA to stay up to date on trends. Pay particular attention to the type of market your desired area is in, as outlined in each regional board’s monthly housing market report.
- Seek professional advice: Engage with a real estate agent with comprehensive knowledge of the local real estate market. They can provide insights into local market data and trends to help you identify the optimal time to secure a good deal on a home.
Frequently Asked Questions
Is now a good time to buy a home in Canada?
Now could be the ideal time to purchase if you have a downpayment ready and qualify for a mortgage. Your agent is more likely to be able to negotiate a lower price on a home during the fall and winter months than in the spring when the market heats up once again.
Should I buy a house now or wait?
Deciding whether to buy now or wait is less about timing the market and more about your personal financial position. Buying can make sense if you have a stable income, strong credit, enough saved for a downpayment, and can secure a mortgage with a payment you can manage comfortably. Waiting may be the better choice if your finances need time to improve, your long-term plans are unclear, or taking on a mortgage would strain your budget.
How do I know if it’s a buyer’s or seller’s market?
You can easily determine if the market is in buyer’s or seller’s territory by looking for the sales-to-new listings ratio (SNLR) in regional housing market reports. A seller’s market is when the SNLR is 60% or higher, a balanced market is between 40% and 60%, and a buyer’s market is below 40%.
Final Thoughts
There is no single correct answer to the question, “Is now a good time to buy a home?” Market conditions, seasonality, and interest rates all play a role, but your personal finances, long-term goals, and comfort level matter just as much. Perfectly timing the market is nearly impossible, but understanding how today’s housing and mortgage landscape works can help you determine if you’re ready for homeownership.
Whether you are ready to buy now or still weighing your options, speak with nesto mortgage experts. Our experts can help you understand what you can afford, compare your mortgage options, and find a strategy that fits your situation, not just the market cycle.
Why Choose nesto
At nesto, our commission-free mortgage experts, certified in multiple provinces, provide exceptional advice and service that exceeds industry standards. Our mortgage experts are salaried employees who provide impartial guidance on mortgage options tailored to your needs and are evaluated based on client satisfaction and the quality of their advice. nesto aims to transform the mortgage industry by providing honest advice and competitive rates through a 100% digital, transparent, and seamless process.
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