CREA now expects home sales decline in 2026 as it lowers forecast again
The Canadian Real Estate Association has lowered its 2026 home sales forecast, citing a weak first half of the year and economic headwinds. However, officials remain optimistic about a market recovery in the second half of the year due to stabilizing interest rates.
Why it matters
Housing market forecasts are critical indicators for the Canadian economy and impact consumer confidence and financial planning.
The Canadian Real Estate Association has downgraded its forecast for home sales activity in 2026 again, despite a small uptick in the number of homes that changed hands in June.
CREA is now expecting a total of 463,336 residential properties to be sold throughout the year, representing a 1.4 per cent decline from 2025. That marks a reversal from its April forecast of a one per cent gain, which itself was a downgrade from the association’s January prediction of 5.1 per cent growth year-over-year.
The national average home price is forecast to rise 1.1 per cent on an annual basis to $686,710 this year, which would be around $2,000 lower than predicted in the spring.
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