Housing Market Cools, but 2026 Promises Growth

In November 2025, Canadian housing markets showed modest signs of stabilization, with home sales decreasing by 0.6% month-over-month. Although sales were still significantly higher than earlier in the year, the market has largely plateaued since the summer. Experts suggest that the mid-year surge in demand has now transitioned into a holding pattern as the year comes to a close. Price reductions were noted in some areas, with sellers adjusting expectations to close deals before the year’s end. This shift, combined with a steady inventory level, indicates a market that is maintaining balance as we move toward 2026.

The number of homes available for sale across Canadian MLS® Systems saw a slight decline in November, down 1.6% from the previous month. However, new listings are still 8.5% higher compared to November 2024, suggesting that while activity is subdued, there is still a consistent level of supply entering the market. The national average home price dropped 2% year-over-year, sitting at $682,219. The MLS® Home Price Index also decreased by 0.4%, with a year-over-year dip of 3.7%. Despite this, the sales-to-new listings ratio tightened to 52.7%, indicating a market that remains relatively balanced, though not yet fully reflective of the long-term average.

Looking ahead, experts remain cautiously optimistic about 2026. The shift in interest rates, along with a softened economic outlook, has created an environment where many potential buyers are poised to re-enter the market. While 2025 was initially expected to see a rebound, the unforeseen economic disruptions have delayed a full recovery. However, with inventory levels remaining steady and interest rates stabilizing, there is anticipation for a more normalized housing market in the spring of 2026. For those looking to navigate the market in the coming year, working with a local real estate professional is advised to ensure readiness for what’s next.