CREA Downgrades Resale Housing Market Forecast

This section is Partnership Content suppliedThe content in this section is supplied by GlobeNewswire for the purposes of distributing press releases on behalf of its clients. Postmedia has not reviewed the content. by GlobeNewswire Article contentOTTAWA, 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. Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe 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.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentThat 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.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentThat, 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.Article contentSome 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.Article contentArticle contentThe 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.Article contentIn 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.Article contentThe 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.Article contentThis forecast would mark years six and seven that the national average home price has hovered close to the $700,000 mark.Article contentEach 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.Trending Trump isolation deepens on world stage as allies rebuff, condemn PMN Business The Great Correction: Not even Wayne Gretzky's hometown could escape the crash of the 'exurbs' Real Estate Posthaste: What Mark Carney's gas tax cut could mean for the Bank of Canada News What is Anthropic's Mythos AI model and why does it have the financial world in a panic? Innovation Forcing people to pay a moral tax if they leave the country won't inspire them to stay Personal Finance Article contentAbout the Canadian Real Estate AssociationArticle contentThe 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.Article contentFor more information, please contact:Pierre Leduc, Media RelationsThe Canadian Real Estate AssociationTel.: 613-237-7111 or 613-884-1460E-mail: pleduc@crea.caArticle contentA photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/32340e55-bbd7-4433-ab2d-0ee204af3ba0Article contentArticle contentArticle contentArticle contentArticle contentArticle contentShare this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. 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