Canada Housing Market Report February 2026

GTA Correction Deepens: Benchmark Drops 7.9% Annually

In February 2026, Canada’s housing market remained soft and transitional, with national home prices showing little change year-over-year amid ongoing affordability challenges. Key data comes primarily from the Canadian Real Estate Association (CREA) monthly report released on March 17, 2026, covering February activity, alongside insights from CMHC and other sources.

National highlights include:

• Home sales dipped 1.3% month-over-month in February 2026, with actual (non-seasonally adjusted) activity 8.1% below February 2025 levels. This reflected quieter conditions continuing from January.
• The national average home price was $663,828, essentially flat with a modest 0.2% decline year-over-year.
• The MLS Home Price Index (HPI) fell 0.6% month-over-month and 4.8% year-over-year, indicating broader price pressure.
• New listings declined 3.9% month-over-month, but inventory levels hovered near the long-term average (around 4.9 months in recent data), shifting conditions toward balanced or buyer-leaning in many areas.
• Regional variations were significant: Prices declined notably in Ontario (e.g., GTA average around $1,008,968, down 7.1% YoY) and British Columbia (e.g., Vancouver benchmark down significantly YoY), while some Prairie and Atlantic markets held steadier or saw gains.

Affordability remained a core issue despite modest improvements from interest rate cuts since 2024 and recent price softening. CMHC’s February 2026 analysis (including its new Housing Affordability Composite Index) noted that homeownership affordability had improved slightly since 2023 lows but stayed stretched relative to historical norms. Challenges persisted due to incomes not fully keeping pace with housing costs, supply-demand imbalances in major cities, and broader factors like economic uncertainty. Pressures had spread beyond Toronto and Vancouver to cities like Ottawa, Montreal, and Halifax. Ownership affordability hit multi-decade lows around 2022 but showed partial recovery, though renters saw more stabilization.

Overall, the market reflected pent-up demand from first-time buyers waiting for better conditions, but affordability fatigue, tariff-related uncertainties, and higher inventory in key provinces limited activity. Forecasts suggested gradual recovery later in 2026 with potential modest price gains nationally, though Ontario and BC could see continued downward pressure.