OTTAWA, Ontario, April 16, 2026 (GLOBE NEWSWIRE) — The Canadian Real Estate Association (CREA) has updated its 2026 and 2027 forecasts for home sales activity and average home prices via the Multiple Listing Service® (MLS®) Systems of Canadian real estate boards and associations.
The major factor underpinning CREA’s long-standing forecast for higher activity going forward is the idea that pent-up demand, particularly from first-time buyers, would start to emerge from the sidelines after having been shut out of the market over the past four years. An important milestone for that to begin has been interest rates no longer expected to fall, as well as for home prices to likewise no longer be in decline in those parts of Canada where they have been.
That said, beginning in the second half of March, inflation from the spike in oil prices raised the odds of a Bank of Canada rate hike later this year, raising bond yields and resulting in a jump in fixed mortgage rates. Higher mortgage rates are expected to curtail activity on their own, but the idea that the oil shock may be short lived will likely also cause many buyers to wait for rates to come back down, further dampening activity at the most active time of the year for housing markets.
That, along with a generally tepid start to the year for Canada’s economy and weaker than expected housing activity in the first three months of the year has resulted in a downgrade to CREA’s forecast.
Some 474,972 residential properties are forecast to trade hands via Canadian MLS® Systems in 2026, representing an increase of 1% over 2025. As previously forecast, the national gain is still expected to be driven largely by British Columbia and Ontario where sales have more room to recover. Activity is forecast to rise only modestly or decline in other provinces where activity had previously been elevated due in part to record population growth which is no longer a factor.
The national average home price is forecast to rise 1.5% on an annual basis to $688,955 in 2026, with virtually no growth in B.C., Alberta, and Ontario, and gains fading into the 2% to 5% range in other provinces.
In 2027, national home sales are forecast to climb a further 2.1% to 485,071 units. That said, this number could be revised above the 500,000 mark should higher interest rates prove unnecessary to fight inflation.
The national average home price is forecast to edge up by 0.9% from 2026 to $695,094 in 2027, with gains held to below inflation across the board. As with sales activity, this number may be subject to an upward revision should the currently oil shock and associated inflation prove short lived.
This forecast would mark years six and seven that the national average home price has hovered close to the $700,000 mark.
Each quarter, CREA updates its forecast for home sales activity and average home prices via Multiple Listing Service® (MLS®) Systems of Canadian real estate boards and associations. CREA’s next forecast will be published on Wednesday, July 15, 2026.
About the Canadian Real Estate Association
The Canadian Real Estate Association (CREA) is one of Canada’s largest single-industry associations. CREA works on behalf of more than 155,000 REALTORS® who contribute to the economic and social well-being of communities across Canada. Together they advocate for property owners, buyers, and sellers.
For more information, please contact:
Pierre Leduc, Media Relations
The Canadian Real Estate Association
Tel.: 613-237-7111 or 613-884-1460
E-mail: [email protected]
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/32340e55-bbd7-4433-ab2d-0ee204af3ba0