Canadas housing market poised for a reset in 2026, with modest price growth and increased activity

• By Mike Heddle
• Posted Monday, Dec 15, 2025 1:33 pm

Canadas housing market poised for a reset in 2026, with modest price growth and increased activity

Improved affordability expected to draw Canadians back into the market through 2026 

Highlights:

• Royal LePage^® is forecasting the aggregate price of a home in Canada will increase 1.0% year over year in the fourth quarter of 2026.
• Nationally, single-family detached prices are forecast to increase 2.0% year over year in Q4 of 2026, while condominiums are projected to decline 2.5% over the same period.
• The aggregate home price in the greater regions of Toronto and Vancouver is expected to decrease 4.5% and 3.5%, respectively, while prices in the Greater Montreal Area are forecast to rise 5.0%.
• Quebec City is once again forecast to see the highest gains among all major regions in 2026, with the aggregate home price expected to rise 12.0%.

TORONTO, December 9, 2025 –After a tumultuous 2025 marked by economic and political shifts, 2026 emerges as a crucial reset year for Canada’s housing market. According to the Royal LePage Market Survey Forecast, Canada’s residential real estate market is expected to post modest price gains next year and an increase in sales activity, as buyers continue to move off the sidelines. The aggregate^[1] price of a home in Canada is set to remain relatively flat, increasing a modest 1.0 per cent year over year to $823,016 in the fourth quarter of 2026. The median price of a single-family detached property is expected to increase 2.0 per cent to $876,934, while the median price of a condominium is anticipated to decrease 2.5 per cent to $563,918.^[2]

“Solid market fundamentals – including lower interest rates, increased supply, and reduced competition – have created a more favourable environment for consumers,” said Phil Soper, president and chief executive officer, Royal LePage. “First-time buyers and those searching in the country’s most expensive regions have a rare window to act on their home ownership plans at reduced prices. While we don’t expect a sharp rebound, this improved affordability will rebuild market confidence among both buyers and sellers, setting the stage for more sustainable, albeit modest, price growth in 2026.”

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