Canadian housing market holds steady as February 2026 extends slower start to the year: CREA

Canada’s housing market stayed on the quieter side in February 2026, building on the softer conditions seen at the start of the year, according to the latest report from the Canadian Real Estate Association (CREA). Both sales and new listings declined month over month, reflecting a market that is finding its footing while continuing to move at a more measured pace.

“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, in the report. “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.”

Sales and listings ease

Home sales slipped 1.3% month over month compared to January, extending the softer trend that began at the start of the year. On a year over year basis, activity was 8.1% below February 2025, reinforcing the more tempered demand environment.

New listings also declined, falling 3.9% month over month and reversing the modest uptick recorded in January. With new supply decreasing more than sales, the national sales-to-new listings ratio edged up to 47.6% from 46.4% in January. This remains within the range typically associated with balanced market conditions, though still below the long-term average of 54.8%.

“Housing market activity in February remained slow, particularly in the stretch of Ontario between Windsor and Toronto,” said Valérie Paquin, CREA Chair, in the report. “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.”

Inventory levels stay in line with long-term trends

At the end of February, there were 151,850 properties listed for sale across Canadian MLS® Systems. This represents a 3.7% increase from a year earlier, although inventory levels are still 12.3% below the long-term average for this time of year.

Months of inventory held steady at five, unchanged from January and consistent with long-term norms. While this suggests balanced conditions at the national level, it continues to mask notable regional differences, with few markets sitting precisely at this level.

Homes prices remain steady

The National Composite MLS® Home Price Index declined just 0.6% on a month over month basis in February, a smaller decrease than in January but still indicative of ongoing price adjustments. Compared to February 2025, the index is down 4.8%, with declines in British Columbia, Alberta, and Ontario offsetting gains in other regions.

Despite these broader shifts, the national average home price remained largely unchanged at $663,828, down just 0.2% year over year. This steady average highlights how variations across local markets continue to balance out at the national level.

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