Canadian Home Sales Dip 1.3% in February 2026 as Market Remains Sluggish
Event summary
- National home sales fell 1.3% month-over-month in February 2026.
- New listings declined 3.9% month-over-month, tightening the sales-to-new listings ratio to 47.6%.
- The MLS® Home Price Index (HPI) dropped 0.6% month-over-month and 4.8% year-over-year.
- National average home price was $663,828, nearly unchanged (-0.2%) from February 2025.
- Inventory levels remained at five months, aligning with the long-term average but masking regional disparities.
The big picture
The Canadian housing market continues to exhibit subdued activity, with February 2026 showing a slight decline in sales and new listings. This follows a broader trend of cautious market behavior, influenced by lingering high mortgage rates and regional price corrections. The national average price remaining nearly flat year-over-year suggests a stabilization at lower levels, though regional variations remain significant. Investors and operators should monitor whether the anticipated spring market pickup materializes and how first-time buyer demand influences pricing and inventory levels.
What we're watching
- Regional Disparities
- Whether regional price declines in B.C., Alberta, and Ontario will persist or stabilize.
- First-Time Buyer Demand
- How pent-up demand from first-time buyers will impact market activity as mortgage rates stabilize.
- Inventory Dynamics
- The pace at which new listings recover after February’s decline and its effect on market balance.
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