Canadian Home Prices Fall to $652,941 as Sales Drop 12.5% to Start 2026

February 21, 2026

Canada’s housing market opened 2026 with weaker sales, falling prices, and rising listings, a combination that is slowly shifting negotiating power back toward buyers in several regions.

According to WOWA’s latest update (last updated February 19, 2026), the national average home price declined to $652,941 in January 2026, while sales fell sharply compared to last year.

Here’s what changed.

Canada Housing Market Snapshot – January 2026

Home Sales: 36,186 (seasonally adjusted)
-5.8% month-over-month
-12.5% year-over-year
Average Sold Price: $652,941
-3.0% month-over-month
-2.6% year-over-year
MLS Benchmark Price: $658,300
-0.3% month-over-month
-4.9% year-over-year
New Listings: +7.3% month-over-month
Active Listings: +4.5% year-over-year

The benchmark price has now declined for eight consecutive months nationally.

Is Canada in a Buyers’ Market Now?

Canada sits at 4.9 months of supply, classified as a “balanced” market nationally — but regional conditions vary widely.

More Buyer-Friendly:

PEI – 10.5 months of supply
British Columbia – 9.8 months

Balanced to Soft:

Nova Scotia – 6.7 months
Quebec – 6.6 months
Ontario – 6.0 months

Still Tight:

Alberta – 3.8 months

In practical terms: buyers now have more options in many provinces compared to late 2025.

Where Prices Are Falling the Most

Annual benchmark declines remain most pronounced in:

Ontario: -7.0% year-over-year
British Columbia: -4.9%
Alberta: -3.1%

Meanwhile, several provinces are still posting gains:

Newfoundland and Labrador: +9.7%
Quebec: +7.1% (record benchmark high at $535,000)
Saskatchewan: +5.6%
New Brunswick: +4.8%
Nova Scotia: +0.6%

The housing market is no longer moving in one direction nationally — it’s splitting regionally.

Ontario: GTA Prices Dip Below $1 Million Again

Ontario continues to cool:

Ontario Average Price: $778,102
-2.8% month-over-month
-6.4% year-over-year
Ontario Benchmark: $745,800
-7.0% year-over-year

In the Greater Toronto Area:

Average Price: $973,289
-6.5% year-over-year
-3.3% month-over-month

It’s the first time in years the GTA average has fallen below $1 million.

Sales in the GTA are down nearly 20% year-over-year.

Nova Scotia and Halifax: Mixed Signals

Nova Scotia showed a seasonal dip in average price:

Nova Scotia Average: $435,387
-9.2% month-over-month
-3.1% year-over-year

But the benchmark price edged higher:

Nova Scotia Benchmark: $417,700
+0.6% year-over-year

Halifax remains stronger:

Halifax Average Price: $569,778
+5.6% year-over-year

This suggests typical home values are holding better than raw averages imply.

Mortgage Rates: Why Demand Isn’t Rebounding Fast

While some fixed mortgage rates are now sitting in the mid-to-high 3% range for certain insured terms, borrowing costs remain significantly higher than pandemic lows.

Stable interest rate expectations through 2026 mean:

No sudden demand surge
Many homeowners renewing at higher payments
Affordability remaining constrained

That dynamic continues to cool buyer activity.

What This Signals for 2026

The early-2026 housing setup looks like this:

Prices are normalizing in Ontario and BC
Atlantic Canada and Quebec are more resilient
Inventory is rising
Buyers have more leverage than in late 2025
Demand remains cautious

The market is not crashing, but it is adjusting.

And for the first time in years, Canada’s housing story is no longer national. It’s regional.