Canadian Home Sales Stagnate as Mortgage Rates Rise

Event summary

  • Canadian home sales were virtually unchanged (-0.1%) month-over-month in March 2026.
  • The MLS® Home Price Index (HPI) fell 0.4% month-over-month and 4.7% year-over-year.
  • New listings edged down 0.2% month-over-month, with overall supply declining since May 2025.
  • The national average home price was $673,084 in March 2026, down 0.8% year-over-year.

The big picture

The Canadian housing market remains subdued as global economic uncertainty and rising mortgage rates dampen buyer activity. While prices continue to decline year-over-year, the pace of decline has slowed, suggesting a potential stabilization. The market's ability to recover will depend on how quickly mortgage rates adjust and whether new supply enters the market to meet pent-up demand.

What we're watching

Rate Sensitivity
How rising mortgage rates will affect buyer behavior and market activity in the traditionally busy spring season.
Price Stabilization
Whether the recent slowdown in price declines signals a broader stabilization in the housing market.
Supply Constraints
The pace at which new listings will increase to balance the market, given current low supply levels.