Canada’s residential resale market is expected to see a notable recovery in 2026 after a period of volatility, according to forecasts by the Canadian Real Estate Association (CREA).
This improvement is attributed to deferred pent-up demand—especially from first-time buyers—along with better economic conditions and the stabilization of interest rates after the Bank of Canada announced they have reached its lowest levels.
The outlook points to around 494,000 homes being sold in 2026, up 5.1% compared with 2025, with British Columbia and Ontario leading the rebound. Despite the ongoing challenge of limited housing supply, average home prices are expected to rise by 2.8% to about USD 699,000.
In 2027, growth is expected to continue at a slower pace, with sales increasing to roughly 512,000 units and prices rising by 2.3%, reflecting stability and sustainable growth in the Canadian real estate market.
