Canadian Home Prices Could Stay Near $700K for Years

Canada’s housing market may not be heading for a major crash or a major rebound anytime soon.

According to the Canadian Real Estate Association (CREA), the national average home price is forecast to stay close to the $700,000 range through 2027, suggesting the market could remain largely stagnant for years.

Home Prices Expected to Rise Slowly

CREA’s spring 2026 housing market update forecasts that the national average home price will rise 1.5% in 2026 to $688,955.

In 2027, prices are expected to increase by just 0.9%, reaching $695,094.

That means Canada’s average home price is expected to remain below the $700,000 mark, with gains staying below inflation.

Prices Have Been Hovering Near $700K for Years

CREA noted that this forecast would mark years six and seven of national average home prices hovering close to the $700,000 range.

This suggests Canada’s housing market is entering a prolonged period of sideways movement.

Instead of a rapid recovery, the market appears to be settling into a slower phase where prices are not falling sharply, but they are not growing much either.

Sales Recovery Also Looks Weak

CREA also downgraded its sales outlook.

For 2026, the association now expects 474,972 residential properties to trade hands through Canadian MLS Systems, representing just 1% growth from 2025.

In 2027, sales are forecast to rise another 2.1% to 485,071 units.

That points to a modest recovery, not a major rebound.

Ontario and BC Are Expected to Drive Sales Growth

CREA says national sales growth is still expected to be driven largely by Ontario and British Columbia, where activity has more room to recover.

However, price growth in both provinces is expected to remain limited.

CREA forecasts virtually no price growth in B.C., Alberta, and Ontario in 2026, while other provinces are expected to see gains in the 2% to 5% range.

What This Means for Buyers

For buyers, this forecast suggests the market may stay more balanced than it was during the pandemic boom.

If prices remain flat, buyers may have more time to compare options and negotiate, especially in markets where inventory is higher.

However, affordability remains a major issue. Even if prices are not rising quickly, high home prices and mortgage costs still make it difficult for many Canadians to enter the market.

What This Means for Sellers

For sellers, the forecast suggests expectations may need to adjust.

The market is not expected to return quickly to the rapid price growth seen during the pandemic.

This means pricing strategy matters more than ever. Homes that are listed too high may sit longer, especially in markets where buyers have more choice.

What This Signals for Canada’s Housing Market

CREA’s latest forecast reinforces one of the biggest housing market themes of 2026.

Canada’s housing market is not crashing, but it is also not rebounding strongly.

Instead, the national market appears to be moving into a period of:

Slow sales growth
Limited price appreciation
Regional differences
Ongoing affordability challenges

For anyone waiting for a major price drop or a major rebound, CREA’s forecast suggests the next few years may look more like a slow reset.

What This Signals for Ontario

In Ontario, the outlook is especially important.

CREA expects little price growth in the province this year, even as sales activity has room to improve. That means Ontario buyers may see more stable pricing, but not necessarily a major affordability breakthrough.

For the GTA and surrounding markets, this could mean continued buyer caution, slower price growth, and a more balanced market compared to the extreme conditions seen in previous years.

References

Canadian Real Estate Association. (2026, April 16). CREA downgrades resale housing market forecast amid tariff uncertainty and economic uncertainty.
https://www.crea.ca/media-hub/news/crea-downgrades-resale-housing-market-forecast-amid-tariff-uncertainty-and-economic-uncertainty-3/

Canadian Real Estate Association. (2026, May). A look into Canada’s housing market: Spring 2026.
https://www.crea.ca/cafe/a-look-into-canadas-housing-market-spring-2026/

Yahoo Finance. (2026, April 16). CREA downgrades resale housing market forecast.
https://finance.yahoo.com/economy/policy/articles/crea-downgrades-resale-housing-market-090400006.html

Canada Housing Market