Canada's home sales plunge in January, led by Ontario
Canada’s real estate market opened 2026 in a slump, as national home sales fell 5.8 per cent month-over-month in January, while actual, non-seasonally adjusted transactions were down 16.2 per cent from a year earlier, according to the latest data from the Canadian Real Estate Association (CREA).
At the same time, the number of new listings rose 7.3 per cent, widening the gap between supply and demand and lowering the national sales-to-new-listings ratio to 45 per cent — down from 51.3 per cent in December and below the long-term average of 54.8 per cent. Months of inventory increased to 4.9 from 4.6, just below the five-month benchmark typically associated with a balanced market.
Prices continued to soften but were stable relative to the decline in activity. The national MLS Home Price Index fell 0.9 per cent month-over-month and 4.9 per cent year-over-year, while the average sale price slipped 2.6 per cent year-over-year to $652,941. Price weakness remained concentrated in Ontario, while several smaller markets posted modest year-over-year gains.
Ontario’s weak sales are part of a longer-running trend, said Shaun Cathcart, CREA’s senior economist. “We’ve seen relatively soft conditions in the province since early last year,” he said.
Greater Toronto sales declined nearly 10 per cent month-over-month, while provincial dollar volume fell 10.2 per cent on the month and 22 per cent from a year earlier, exceeding national declines. Sales also fell sharply across several Southwestern Ontario markets, including Hamilton–Burlington and Kitchener–Waterloo.
Markets were more resilient in other regions, including Calgary, where seasonally-adjusted sales were up 3.0 per cent month-over-month, and Regina, up 9.4 per cent. The Ottawa market was little changed and Montreal posted a modest 0.5 per cent decline.
Canada's housing market ended 2025 with a whimper
Canada's housing market stuck in 'holding pattern,' says CREA
CREA attributed the weakness in Central Canada to weather-related disruptions in January rather than a broad pullback in demand, pointing to severe winter storms that limited activity across Ontario.
“The monthly decline in national home sales was driven primarily by less activity in the Greater Golden Horseshoe and Southwestern Ontario, suggesting that the story was probably more about a historic winter storm than a downshift in demand,” said Cathcart.
ads
0 Comments