Canada Housing Market

February 1, 2026

Most Canadian housing markets have so far held up better than expected during the national downturn – but cracks are starting to show. New data from the Canadian Real Estate Association (CREA) reveals that home prices fell again in December, with only Prince Edward Island and Quebec managing to post gains.

While most of the national decline has been concentrated in Ontario and British Columbia, Nova Scotia unexpectedly recorded the largest monthly drop in the country. The sudden shift suggests another once-hot market may finally be entering a correction phase.

Canadian Home Prices Are Down Over 21% From Peak

Home prices slipped for a second straight month in December, with the national benchmark falling 0.7% (-$4,800) to $660,000. On a year-over-year basis, prices are now 4.0% (-$27,400) lower.

More notably, prices are now 21.6% (-$181,600) below the March 2022 peak. However, most of that decline remains heavily concentrated in just two provinces: Ontario and British Columbia.

Nova Scotia Leads Monthly Declines, PEI & Quebec Rise

Only two provinces recorded price gains in December. PEI led the country with a 0.9% increase (+$3,400), more than double Quebec’s 0.4% gain (+$2,300). New Brunswick was effectively flat, with a negligible uptick.

Every other province saw prices fall. Nova Scotia posted the steepest drop nationwide, with prices plunging 3.2% (-$13,500) in just one month – nearly triple the declines seen in Ontario (-1.1%, -$8,000) and BC (-0.8%, -$7,100).

Most of Canada’s Price Correction Still Driven by ON & BC

Ontario remains the epicentre of Canada’s housing downturn. The typical home is now 25.7% (-$259,200) below its March 2022 peak, sitting at $749,400.

British Columbia follows with a 16.6% (-$177,600) decline, bringing the benchmark price to $894,000. Together, these two provinces account for the vast majority of Canada’s national price correction.

What This Signals for Nova Scotia

Nova Scotia is now the third-largest market decline from peak, with prices down 5.6% (-$24,600) to $412,900. What’s notable is that more than half of that entire correction happened in just one month.

That kind of abrupt drop often reflects a shift in buyer sentiment rather than normal seasonal movement. After years of pandemic-driven price surges, rising interest rates and affordability constraints appear to be catching up with the province.

With Halifax condo prices approaching levels seen in major urban markets, Nova Scotia’s housing market may finally be reverting to more realistic fundamentals.

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References

Canadian Real Estate Association. (2026). MLS Home Price Index – December 2025. https://www.crea.ca
Better Dwelling. (2026). Nova Scotia Home Prices Post Largest Drop in Canada. https://betterdwelling.com

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