The Canadian Real Estate Association (CREA) attributes the decline in housing sales in January to harsh winter conditions. CREA’s latest data reveals a 5.8% drop in national housing sales compared to the previous month.
Shaun Cathcart, CREA’s senior economist, explained that the sluggish January was most pronounced in parts of Ontario, where severe winter weather hindered activity. He noted that the sales dip was concentrated in central and southwestern Ontario, areas heavily impacted by a major storm in the third week of January.
The inclement weather likely discouraged potential buyers from attending house showings, according to Joe Ferrante, a real estate agent in the Hamilton area. Ferrante suggested that the reduced transactions were a continuation of the slower market seen at the end of 2025.
Despite the subdued January, CREA maintains its 2026 forecast, anticipating improvement in the housing market. The association reported around 4.9 months of housing inventory available for sale by the end of January, aligning with the long-term average of five months.
While some buyers may be awaiting lower interest rates, Cathcart indicated that there are no imminent rate adjustments on the horizon. The Bank of Canada slashed its key interest rate to 2.25% in late October but has not revised it since.
CREA predicts a marginal 2.8% increase in the national average home price for 2026 based on the national composite MLS Home Price Index. Regional disparities show price declines in British Columbia, Alberta, and Ontario offsetting gains in other provinces.