By Joe Purewal Mortgages

As we kick off 2026, Canadian homebuyers are entering the market with a unique set of opportunities. According to the Royal LePage® House Price Survey and Market Forecast, the Canadian housing market closed out 2025 with a modest decline in prices, reflecting lingering caution among buyers. Yet, looking ahead to spring, conditions are shaping up to benefit those ready to take the next step toward homeownership.

Market Softness Creates Opportunity
The survey reports that the national aggregate home price fell 1.5% year over year to $807,200 in Q4 2025, with quarter-over-quarter declines of 1.1%. Single-family homes saw a modest drop of 0.8% to $849,100, while condominiums were down 2.9% to $575,300. While these numbers indicate a softer market, they also signal an opening for buyers, especially in expensive markets where affordability has been a barrier.

Phil Soper, CEO of Royal LePage, points out that lower borrowing costs, balanced inventory, and stable home prices give buyers a meaningful advantage heading into the spring. For first-time homebuyers and those looking to upgrade, these conditions are particularly encouraging.

Condo Markets Still Present Challenges
Urban condominium markets in Toronto and Vancouver continue to experience softness due to elevated inventory, reduced investor activity, and cautious first-time buyers. With higher carrying costs prompting some investors to exit and rental demand temporarily subdued, condos are experiencing a more competitive market. For buyers, this can translate into better negotiating power and more choice—especially for those entering the market for the first time.

Spring 2026: A Gradual Comeback
Historically, spring is the most active season for real estate, and 2026 is expected to follow suit—albeit more gradually. With interest rates no longer a barrier, inventory at healthy levels, and economic indicators pointing to moderate growth, buyers can feel more confident in their decisions.

One key factor to watch is consumer confidence. After a year of economic and political turbulence, many Canadians are shifting focus away from uncertainty and toward securing homes that meet their families’ needs. As this adjustment continues, we anticipate a gradual increase in market participation, creating opportunities for buyers who act now.

Regional Highlights

  • Montreal saw strong gains, with a 4.5% increase in aggregate home prices.
  • Toronto and Vancouver recorded declines of 5.7% and 4.1%, respectively, making entry points slightly more accessible in these high-cost markets.
  • Quebec City continues to lead in growth, with a remarkable 13.2% increase year over year.

What This Means for Homebuyers
At Joe Purewal Mortgages, we view the current market as buyer-friendly for those prepared to act strategically. Lower borrowing costs, moderate prices, and balanced inventory provide a window of opportunity to secure a home before competition increases later in the year.

If you’re considering buying or refinancing in 2026, now is the time to explore your options. By understanding your finances, credit, and mortgage choices, you can make confident decisions and position yourself for success.

Contact Joe Purewal Mortgages today to discuss your homebuying plans and take advantage of the opportunities in the 2026 spring market.

Source: Royal LePage® House Price Survey and Market Forecast, Q4 2025