CALGARY — Home sales across Canada in February declined 1.3% from January and dropped 8.1% from February 2025 according to a new report from the Canadian Real Estate Association (CREA).
“February saw a continuation of the quieter levels of activity recorded in January, although there was some indication things were starting to pick up speed toward the end of the month,” said Shaun Cathcart, CREA’s senior economist.
“2026 is still ultimately expected to be a story about pent-up first-time buyer demand finally seeing a chance to enter the market."
"They’ve had to wait a long time for mortgage rates to find a bottom, but some will no doubt continue to hold off for a bottom in prices in some Ontario and British Columbia markets.”
Also down from January’s numbers were new listings (-3.9%) and the home price index (-0.6%).
There were 151,850 active listings at the end of February, up 3.7% from a year earlier but 12.3% below the long-term average for that time of year.
“Across the country, there were five months of inventory in the supply chain, which is in line with the long-term average for the measure,” said Cathcart. “However, the national average masks wide regional differences, with no province currently at that level and only a handful of local markets close to it.”
“Based on one standard deviation above and below that long-term average, a seller’s market would be below 3.6 months, and a buyer’s market would be above 6.4 months.”
The national benchmark price in February reached $661,100 while the average price came in at $663,828.
The difference between the benchmark and average price is the benchmark is the cost of the typical home, based on standard features, while the average is a simple mathematical average of all homes sold, regardless of their size, quality, or price, which can be easily skewed by luxury sales or fixer-uppers.
CREA’s figures showed price declines in BC, Ontario and Alberta offset gains in other provinces, with markets such as St. John’s, Regina and Quebec City seeing stronger annual price growth.
“With new supply down by more than sales in February, the national sales-to-new listings ratio tightened to 47.6% compared to 46.4% in January,” said Carthcart. “The long-term average for the national sales-to-new listings ratio is 54.8%, with readings roughly between 45% and 65% generally consistent with balanced housing market conditions.”
There were 151,850 properties listed for sale across all Canadian MLS Systems at the end of February, up 3.7% from a year earlier but 12.3% below the long-term average for that time of year.
“Housing market activity in February remained slow, particularly in the stretch of Ontario between Windsor and Toronto,” said Valérie Paquin, CREA chair. "That said, the main event never really gets going until around April, so there’s still time to get ready to buy or sell this year.”
Senior Canada economist Michael Davenport at Oxford Economics, told Canadian Mortgage Trends the latest figures underscore how entrenched a housing downturn has become, with sales having fallen for four straight months and the national benchmark price declining for 13 months.
“A spring thaw in Canada’s resale housing market looks unlikely,” said Davenport. “The labour market is deteriorating, trade policy and geopolitical uncertainty are elevated, and the population is shrinking, all of which will likely continue to weigh on housing demand and keep supply high in the coming months.”
“We expect house prices to fall further in the spring before finding a bottom around mid-year, thanks to a resumption of modest job growth, improved affordability, and fiscal stimulus that will increasingly support the economy in H2,” said Davenport.
“However, there’s a growing risk that the slump in Canada’s housing market persists for longer. Prospects for a sustained pickup in resale housing hinge on the successful renegotiation of the USMCA that lowers tariffs and lessens trade policy uncertainty.”
“Any spring rebound is likely to be uneven, with Toronto and other major urban centres lagging regional markets and first-time buyers relying more heavily on extended amortizations and insured solutions to make purchases work.”
