In 2025, there were 4,750 property sales totaling $2.1 billion, up from 4,665 sales worth $1.9 billion in 2024. Prince Rupert had 159 sales worth $68.3 million, Terrace saw 290 sales worth $152.3 million, and Kitimat recorded 164 sales worth $68.1 million. Sales increased overall, with some variations in individual municipalities.
Economists now expect the Bank of Canada to hold rates steady through most or all of 2026 after 100 basis points of cuts in 2025.
The policy rate sits at 2.25%, with the BoC signalling it is “about the right level” amid resilient growth and tariff uncertainty.
Several banks see the next move more likely being a hike than a cut, possibly late 2026 or in 2027 if inflation reaccelerates.
While no change is the base case, risks remain two-sided, with cuts requiring economic deterioration and hikes tied to firmer inflation.
Sales Stalemate: Home resales have remained flat since mid-2025 as buyers and sellers wait each other out, muting fall market activity.
Price Pressure: National prices have slipped, down 3.7% yearly, with softness concentrated in Ontario, British Columbia, and parts of Alberta.
Regional Divide: While major markets like Toronto and Montreal cooled, cities such as Vancouver, Calgary, Edmonton, and Prairie markets saw gains.
2026 Setup: With rate cuts likely finished, pent-up demand may emerge in 2026, though affordability, immigration slowdown, and regional risks persist.
Canadian office real estate is improving as workers return to offices, with vacancy rates dropping nationally from 18.7% to 18% and a nearly 3% decrease in downtown Toronto. No new office construction is expected, supporting further vacancy declines. However, the condo market is struggling due to tighter immigration policies reducing demand, causing prices to fall, especially in Greater Vancouver, with more declines expected in 2026.
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10% of Canadians plan to buy homes next year, half first-time buyers.
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Despite economic uncertainty, buyer interest remains strong heading into 2026.
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One-third of markets will shift from buyers’ to balanced conditions.
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Home sales expected to rise 3.4% in 2026, signalling market momentum.
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First-time buyers creatively save, navigating prices dropping -3.7% on average.
To pay off a mortgage faster, consider accelerated payment schedules like accelerated biweekly to make extra payments without feeling the impact. Make lump sum payments with bonuses or tax refunds to reduce principal and interest. Shorten the amortization period to 15 or 20 years if affordable. Increase regular payments annually by 10-20%. Avoid costly penalties by choosing mortgages with lower break fees. Shop for lower interest rates to save money. Use Home Equity Lines of Credit cautiously to avoid delaying mortgage freedom.
Breaking a mortgage means paying it off early, changing terms, or ending the contract, often incurring penalties. Open mortgages have no fees, but closed fixed-rate mortgages require paying three months' interest or the interest rate differential, whichever is higher. Variable-rate mortgages usually incur a three-month interest penalty. Additional fees may apply. Strategies to reduce penalties include making maximum prepayments, porting the mortgage, blending and extending rates, or having the buyer assume the mortgage. Careful calculation is essential before deciding.
Seven of 10 municipalities in B.C.'s third housing targets group have exceeded their one-year goals, delivering over 3,600 new homes since August 2024, surpassing targets by 143%. Three communities exceeded targets by over 200%, while two others show progress. One community completed only 20% of its target and may face an adviser appointment. The province plans $9 million to aid local governments in streamlining development approvals.
Canada’s housing market is expected to see a slow rebound in 2026, with modest price gains and gradually improving affordability.
National home prices are forecast to rise about 1% yearly, as lower borrowing costs encourage sidelined buyers to return cautiously.
Regional performance will diverge, with price declines expected in Toronto and Vancouver, while Quebec City and Montreal lead gains.
Stabilized mortgage rates, easing uncertainty, and incremental supply growth are predicted to support steady demand through 2026.
Data shows one in ten Canadians plan to buy within twelve months, half first-time buyers, signaling renewed confidence nationally.
Buyer demand is stabilizing as rates ease and listings rise across most regions, shifting markets toward balance after 2024 conditions.
Affordability pressures persist despite improving sentiment, with prices, stress tests, down payments, and cautious buyers still limiting first-time participation nationwide.
CMHC warns weak construction productivity added billions to housing costs, constraining new supply and muting benefits of lower rates ahead.
Fara Ghafari is a licensed real estate agent as well as a REALTOR® in CREA and an expert in rental and for-sale properties at 88 West Realty.
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