The Canadian Real Estate Association (CREA) reported that home sales maintained a slow pace throughout February 2026, although there were signs of increased activity towards the end of the month. The report highlighted a significant year-over-year decline, revealing that the number of homes sold across Canada was 8.1 per cent lower compared to February 2025. Additionally, there was a month-over-month decrease of 1.3 per cent in sales on a seasonally adjusted basis.

CREA's senior economist, Shaun Cathcart, expressed an optimistic outlook despite the slow start to the year. He indicated that there is still a pent-up demand from first-time buyers, which could lead to an increase in sales in 2026. However, he noted that some buyers may continue to wait for a decrease in prices, particularly in specific markets within Ontario and British Columbia.

The national average sale price for homes in February 2026 saw a slight decline of 0.2 per cent compared to the previous year, settling at $663,828. This minor decrease suggests a stabilizing trend in home prices despite the broader challenges in the housing market.

In terms of inventory, there was a noticeable reduction in newly listed properties during the month, with a month-over-month drop of 3.9 per cent. This decline effectively reversed the increase observed in January 2026. CREA reported that at the end of February, there were 151,850 properties listed for sale on all Canadian Multiple Listing Service (MLS) systems. While this figure represents a 3.7 per cent increase from the same period a year earlier, it is still 12.3 per cent below the long-term average expected for this time of year.

The evolving landscape of the Canadian real estate market reflects a complex interplay of factors, including buyer sentiment, market conditions, and inventory levels. As the year progresses, the potential for a rebound in home sales remains, particularly as first-time buyers navigate their options amid fluctuating prices and inventory challenges.