The Canadian Real Estate Association (CREA) has reported that home sales in Canada continued to move at a subdued pace in February 2026, though there were signs of increased activity as the month came to a close. The data reveals that the number of homes that changed hands across the country was 8.1 percent lower when compared to February 2025. Additionally, seasonally adjusted sales experienced a modest decline of 1.3 percent from the previous month.
Despite the slow start to the year, Shaun Cathcart, a senior economist with CREA, expressed optimism regarding the potential for increased sales. He noted that there remains substantial pent-up demand from first-time homebuyers, which is expected to translate into sales activity in 2026. However, Cathcart acknowledged that some buyers may still be hesitant, waiting for a dip in prices, particularly in specific markets within Ontario and British Columbia.
The national average sale price for homes in February showed a slight decrease of 0.2 percent from the same month last year, resulting in an average price of $663,828. This decline indicates a challenging environment for sellers, as homeowners grapple with the ongoing changes in the housing market.
In terms of new listings, CREA indicated a decline of 3.9 percent month-over-month in February, effectively negating the increase observed in January. At the close of February, there were 151,850 properties listed for sale across all Canadian Multiple Listing Services (MLS). This figure represents a 3.7 percent increase compared to the previous year, but it remains 12.3 percent below the long-term average for this time of year, highlighting the tight inventory levels affecting potential buyers.
Overall, these findings suggest that while there is a potential for recovery in the Canadian housing market driven by first-time buyers, challenges remain regarding inventory levels and pricing perceptions. The dynamics of the market continue to evolve, with various factors influencing buyer and seller decisions in these uncertain economic conditions.
