Canada’s Modular Builds Could Close Gap

Canada needs >480K new units annually through 2035, while current projections point to ~223K yearly starts by 2027, highlighting a major opportunity for faster building.
Factory-based construction can shorten project timelines by ~20% to ~50%, improve thermal efficiency, reduce site labour needs, and make costs more predictable.
Cost savings of ~20% to ~40% depend on volume and standardization, conditions that have not yet developed at meaningful Canadian scale today.
Policy alignment is starting: current federal code updates aim to support factory-built housing and faster reviews for innovative construction products across Canada.
Financing changes could help too, including advances tied to verified factory milestones instead of only traditional on-site construction checkpoints for modular projects.

Home prices up 2.2% year-over-year as April sales cool, CREA reports

Home sales in Canada fell year-over-year in April, while the average sale price rose to $695,412, a 2.2% increase. Sales edged up 0.7% from March on a seasonally adjusted basis. Global economic uncertainty and higher mortgage rates are expected to keep the housing market rebound muted, though some upward momentum remains.

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What’s the Cheapest City in Canada to Buy a House in 2026?

Affordable real estate in Canada is mainly found in the Prairie Provinces, Atlantic Canada, and Northern Ontario, with cities like Portage la Prairie, Regina, Saint John, and Thunder Bay offering lower average home prices. Overall home prices are expected to decline by about 3.5% in 2026, though some markets may see growth. Affordability depends on local economic conditions, migration trends, and individual financial situations.

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Canada Housing Outlook Flags Condo Oversupply

Canada’s central bank kept overnight rates near 2%, while its current outlook shifted focus toward housing’s expected drag on 2026 activity and growth.
Housing is forecast to trim real GDP growth by 0.1 points in 2026, a ↓0.3-point revision from Early-Q1, largest among domestic components.
Planning focus now: stretched affordability, slower population growth, weak investor interest, and small-condo inventory overhang expected to restrain major-centre construction going forward.

Canada Buyers Gain More Choice in 2026

Stable borrowing costs and firm housing costs are giving active buyers a clearer planning window, with accessible entry points emerging in several markets.
After years of unpredictable inventory, rates, remote work, trade policy, and inflation, softer price growth points toward a more normal 2026 market.
The central bank suggested its overnight lending rate may hold near 2% for much, if not all, of 2026, supporting buyer confidence.
Balanced or buyer-favoured regions give shoppers more time to compare options, focus on fit, and avoid rushed decisions under pressure in 2026.
Fredericton led the national 2026 ranking again, combining East Coast affordability, equity-building potential, market stability, and lifestyle appeal for buyers seeking value.

Canada Housing Forecast Shows Modest Growth

Canada’s 2026 resale outlook still points higher: ~475K homes are forecast to trade, ↑~1% from 2025, led by British Columbia and Ontario.
National avg. home price is forecast near ~$689K in 2026, ↑~2%, with little growth expected in British Columbia, Alberta, and Ontario overall.
Mortgage-rate uncertainty is expected to shape activity and may keep some buyers waiting for rates to settle during the busiest season ahead.
The outlook depends on pent-up first-time buyer demand returning once rates stop falling and affected local prices show signs of stabilizing more clearly.
For 2027, sales are forecast near ~485K and prices near ~$695K, with potential upside if inflation pressures prove short lived and rates prove unnecessary.

More sellers spring into Canada’s housing markets

Canada's housing markets show mixed April results with more sellers entering. Some areas saw resale increases from March but remain below last year, while others experienced declines. New listings rose, reaching record highs in places like Montreal and Ottawa, easing price pressures. Buyers have stronger negotiating power in Vancouver and Toronto, causing price corrections, while other regions see steady value gains. Economic uncertainty continues to dampen demand.

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Here are the best places to buy a home in Canada in 2026

The top three best places to buy a home in Canada are Fredericton, N.B., St. John’s, N.L., and Edmonton, Alta. Fredericton offers affordable prices with strong growth potential, averaging $344,467 per home. St. John’s shows consistent growth with an average price of $381,042 and new builds as a good option. Edmonton balances big-city life with affordable housing, averaging $408,300. Toronto and Vancouver remain the least affordable markets.

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Housing affordability rises in Canada

Canada's housing affordability has improved recently, mainly in large markets where prices have declined. Over 57% of Canadian markets saw better affordability in early 2026 compared to late 2025, though this is lower than the peak improvements seen in mid-2025. Ownership costs as a percentage of income dropped to 52% in late 2025 and are forecasted to improve slightly in 2026. Major cities like Toronto and Vancouver remain above the national average, while Calgary and Edmonton show better affordability.

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Developers Get Creative With Incentives

Some developers offered to cover up to one year of mortgage payments on new homes.
The offer capped at about $50K, suggesting homes around $1M, with move-in by end of 2026.
Experts say buyer incentives grow during slow markets, and perks are more common now.
Another builder offered up to a year of property taxes, utilities, and costs, capped near $12.5K.
Brokers say perks now include covered fees, parking, lockers, and upgraded finishes.

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