Canadian Home Sales Dip 5.8% in January 2026 as Winter Storms Disrupt Market

Event summary

  • Canadian home sales fell 5.8% month-over-month in January 2026, driven by a historic winter storm in Central Canada.
  • Newly listed properties jumped 7.3% month-over-month, with Montreal, Quebec City, Calgary, Greater Vancouver, and Victoria leading the increase.
  • The MLS® Home Price Index (HPI) fell 0.9% month-over-month and was down 4.9% year-over-year.
  • The national average sale price dipped 2.6% year-over-year to $652,941.
  • The national sales-to-new listings ratio dropped to 45%, indicating a balanced housing market.

The big picture

The decline in Canadian home sales in January 2026 highlights the significant impact of weather disruptions on real estate markets. While the long-term outlook remains positive due to pent-up demand from first-time buyers, the short-term volatility underscores the sensitivity of the market to external factors. The increase in new listings suggests that sellers are eager to capitalize on market opportunities, but buyer reactions will be crucial in determining the trajectory of prices and sales volumes.

What we're watching

Weather Impact
How the pace of recovery in Central Canada will affect overall market activity in the coming months.
Supply Dynamics
Whether the increase in new listings will sustain buyer interest and stabilize prices.
Market Balance
The extent to which the national sales-to-new listings ratio will influence market conditions.