N※N

CREA Forecast: Cautious Optimism for Canadian Housing Market

  //business-finance.news-articles.net/content/202 .. utious-optimism-for-canadian-housing-market.html
  Published in Business and Finance on Thursday, January 15th 2026 at 10:14 GMT by Toronto Star

Toronto, ON - January 15, 2026 - The Canadian Real Estate Association (CREA) today released an updated forecast for the nation's resale housing market, signaling a period of cautious optimism and revised expectations for 2026 and 2027. While a rebound is anticipated, the forecast emphasizes a more measured approach to price appreciation compared to earlier projections, primarily driven by evolving interest rate scenarios and broader economic conditions.

Revised Projections Amidst Economic Uncertainty

CREA's Chief Economist, Robert Hogue, underscored the shift in outlook. "We still foresee increased activity within the Canadian housing market," Hogue stated, "however, recent economic data necessitates a more tempered view on the trajectory of average home prices."

The revised forecast predicts a national average home price of $533,400 for 2026, followed by $545,400 in 2027. Sales volume is projected to reach 442,300 units in 2026 and 469,000 units in 2027. These figures suggest a recovery from the recent market adjustments but at a pace considered more realistic given the current economic landscape.

Interest Rates: The Pivotal Factor

The central element underpinning this forecast is the unpredictable nature of interest rates. Financial markets are currently anticipating rate cuts, but the timing and magnitude of these reductions remain significantly uncertain. CREA highlights that a faster-than-expected easing of monetary policy could potentially propel prices higher, while a delayed or gradual easing could restrain price growth. The delicate balance makes accurate prediction particularly challenging.

Experts believe that the Bank of Canada's actions will be heavily influenced by inflation data and overall economic stability throughout 2026. Any unexpected surges in inflation could halt rate cuts or even trigger further tightening, impacting housing affordability and market sentiment.

Regional Disparities to Define the Landscape

CREA's analysis emphasizes the importance of regional variations. Areas that experienced the most significant price declines in recent downturns are likely to witness comparatively stronger price increases as the market recovers. This suggests a potential divergence in performance across different provinces and urban centers. For instance, markets in Alberta and Saskatchewan, which saw substantial price corrections, might see more robust rebounds than regions that experienced milder adjustments.

"The Canadian housing market isn't a monolith," Hogue explained. "Regional economies and demographics play a crucial role, and we expect to see distinct patterns of recovery across the country."

CREA's Role and Disclaimer

The Canadian Real Estate Association serves as the national trade association for Canadian real estate professionals, dedicated to fostering a sustainable, competitive, and ethical real estate industry. This forecast is based on a range of economic models and assumptions, and CREA acknowledges that it is subject to change based on evolving economic conditions. The release includes a standard disclaimer regarding "forward-looking information," reminding readers that actual results may vary significantly from the projections outlined due to factors beyond CREA's control.

Implications for Buyers and Sellers

For potential homebuyers, the forecast suggests a period of relative stability and potentially improving affordability as interest rates are expected to eventually decline. However, buyers should remain vigilant and closely monitor economic news and interest rate trends. Sellers should be aware that the days of rapid price appreciation may be over, and a more strategic approach to pricing and marketing will be essential to achieve desired outcomes. Consulting with a qualified real estate professional remains crucial for both buyers and sellers navigating this evolving market.