The Canadian Real Estate Association (CREA) reported that the number of home sales in Canada declined in 2025 over 2024. Canada’s real estate market has seen extraordinary growth before trade tensions last year raised economic and labour market uncertainty, lowering confidence among Canadian households. However, listings have gone up, and mortgage rates have come down, which could mean an increase in buying activity in 2026. Here’s more from CREA’s existing home sales report.

• CREA announced that sales of existing homes declined by 2.7% in December over the previous month. This marked its second consecutive decline after falling by 0.6% in November. Sales of existing homes declined by 1.9% in 2025 to 470,314.
• Activity in Canada’s housing market came under pressure in 2025. The U.S. imposed substantial tariffs on key sectors of Canada’s economy, raising concerns about its outlook. This played a large role in sending consumer confidence plummeting.
• CREA remains optimistic that 2026 will be a better year for Canada’s real estate market. Listings were up 7.4% on a year-over-year basis in December. CREA said that interest rates are at a relatively good place, which could bring buyers to the market.
• CREA Chair Valerie Paquin said that “interest rates at this point are as good as they are going to get.” The Bank of Canada (BoC) seems poised to hold its benchmark interest rate steady at 2.25% at its upcoming meetings, barring any major changes in economic conditions.

The real estate market had a tough 2025, but CREA believes 2026 will be much better, while cautioning that a negative event, like tariffs last year, could heighten economic uncertainty and weigh on demand. Mortgage rates are down compared to just a couple of years ago, which could bring those buyers, who’ve been waiting for lower mortgage rates, to market. The BoC is likely to hold its key policy interest rate steady at its January 28 meeting, which could keep mortgage rates largely unchanged.

If you would like to discuss this economic and market update or have questions about your finances and investments, please feel free to contact me anytime.