Canada’s Housing Market in 2026: What a Cooling Market Means for Buyers (and Smart Planning for Mortgage Clients)

Canadian house prices have been a hot topic for years and the outlook for 2026 continues the trend of uncertainty and shifting conditions. After a period of slowing price growth and cooling markets in 2024–2025, many forecasts now point to more balanced conditions in 2026, with flat or slightly declining prices in parts of the country and modest growth or stability in others.

There isn’t one universal prediction for Canada, instead, it’s a story of regional variation and cautious optimism:

• Some economists and forecast models, including RBC, suggested prices might dip slightly into 2026 as supply eases and inventory rises in key markets like Ontario and British Columbia.

• CREA’s updated forecasts show national sales bouncing back next year, but average prices are expected to remain relatively flat compared with recent highs.

• Meanwhile, other forecasts (such as Royal LePage’s) indicate that aggregate home prices in Canada may actually tick up modestly in 2026 overall — but not in all markets. For example, prices in the Greater Toronto Area and Greater Vancouver are forecast to decline year-over-year even as other areas see slight gains.

  
  

Bottom line: If you’re hearing talk about prices dropping, that isn’t a blanket prediction, but there are conditions in certain regions where downward pressure is likely. For example, markets like Toronto and Vancouver may see softening or declines, while other cities are projected to hold steady or even grow slightly.