The Canadian Real Estate Association (CREA) has announced a downward revision of its forecast for home sales in 2026. The updated estimate projects total home sales to reach 444,530 units, which represents a 5.2% decrease compared to 2025 and a 1.4% decline from earlier predictions made by CREA throughout the year. This adjustment marks the third consecutive quarter in which CREA has lowered its sales forecasts.
The decision to revise the forecast echoes concerns regarding broader economic conditions affecting the housing market. Notably, a recent report indicated that home sales fell by 7.7% in September 2026 compared to the same month in 2025. Market analysts suggest that several factors are contributing to this slowdown, including potential interest rate hikes from the Bank of Canada and an increase in fixed-rate mortgage costs. These economic pressures appear to have made prospective buyers more hesitant to engage in the market, affecting overall sales activity.
As CREA continues to adjust its outlook, it reflects ongoing volatility in Canada’s housing market, influenced by both local dynamics and larger economic trends. Stakeholders, including real estate agents and prospective homebuyers, will be keeping a close watch on future developments as the landscape remains uncertain and subject to change.
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