Canada Housing Market by City 2026: Where Prices Shifted

Canada housing market by city

This article is for informational purposes only and does not constitute financial advice. Speak with a licensed mortgage professional before making any mortgage decisions.

Quick Answer: Where Canadian Home Prices Stand This Spring

Canadian housing prices in spring 2026 are diverging sharply by city. Toronto and Vancouver benchmark prices are down roughly 7% year-over-year, while Montreal is up about 5% and Calgary is essentially flat. The national MLS® Home Price Index was down 4.7% year-over-year in March 2026 with the Bank of Canada policy rate held at 2.25%.

Quick Answer

  1. Canadian housing prices in spring 2026 are diverging sharply by city — Toronto and Vancouver are down roughly 7% year-over-year, while Montreal is up about 5% and Calgary is essentially flat.
  2. Alberta and Quebec markets remain tight with under three months of inventory, putting sellers in control. Toronto and Vancouver sit in balanced-to-buyer territory with more listings, longer days on market, and more negotiating room for buyers.
  3. The national MLS® Home Price Index was down 4.7% year-over-year in March 2026, with the Bank of Canada policy rate held at 2.25%. CREA’s 2026 forecast calls for stabilizing prices but no broad rebound through the spring season.

Why One Country, Five Different Housing Markets

If you’re shopping for a home in Toronto this April, you’re looking at a market with rising listings, longer days on market, and benchmark prices roughly 7% below where they sat a year ago. Drive five hours west to Calgary, and the picture flips: under three months of inventory, prices essentially flat year-over-year, and sellers still calling most of the shots at the offer table.

That’s the story of Canadian housing in spring 2026. There isn’t a single national market anymore — there are several, moving in different directions, often at different speeds. The national headline numbers tell you something. They don’t tell you what’s happening on your street.

This guide cuts through that noise. We’ll walk through the six largest Canadian markets, show you which way each is moving, explain what those shifts typically mean for your mortgage, and give you a method you can apply to any city you’re watching. For the bigger picture on the new phase the Canadian market entered this year, we have a separate read.

−7.9% Greater Toronto YoY benchmark change, March 2026
+5.8% Montreal YoY benchmark change, March 2026
2.8 Months of inventory in Calgary — tightest seller’s market
2.25% Bank of Canada policy rate, held since October 2025

Quick Start: Which Path Are You On?

Most readers fall into one of four situations. Pick the one that matches yours and the section ahead will speak directly to you.

Path 1

I’m a buyer this spring

Focus on the comparison data and your specific city read. The benchmark price tells you the trend; months of inventory tells you your leverage at the offer table.

Path 2

I’m thinking about selling

Read the section for your city carefully. A tight market like Calgary or Montreal still favours sellers; balanced markets like Toronto require sharper pricing.

Path 3

My renewal is coming up

City price shifts may or may not flow through to your home’s appraised value. The five-step method below shows you how to read the signals before renewal.

Path 4

I’m exploring refinancing

Equity matters most here. If your city has seen a benchmark drop, your accessible equity may have shifted — worth confirming before you commit.

Whichever path you’re on, the math starts with knowing what you can actually afford in today’s rate environment. You can run a quick pre-approval in a few minutes — the broker service is free to you because lenders pay the broker, not the borrower.

The Cross-Country Snapshot: Six Cities Side by Side

The MLS® Home Price Index is the most reliable benchmark for Canadian housing because it tracks the value of a typical home rather than averages, which can swing based on which homes happened to sell that month. As of March 2026, six major cities show clearly different directions — from Toronto down 7.9% year-over-year to Montreal up 5.8%.

The table below shows where things stood at the most recent CREA release. The benchmark price is what a typical home in that market is worth — a more useful number than averages or medians because it filters out the noise of which homes sold. For more on what the MLS® HPI benchmark price actually measures, we have a deeper explainer.

City Benchmark Price YoY Change Months Inv. Market Read
Greater Vancouver $1,101,700 −6.7% ~5.0 Balanced, buyer-leaning
Greater Toronto $932,000 −7.9% ~4.3 Balanced
Calgary $565,800 −2.7% ~2.8 Seller’s market
Montreal $592,400 +5.8% ~3.9 Tight balanced
Ottawa $617,700 −2.1% ~3.3 Tight balanced
Edmonton $413,700 −2.1% ~2.8 Seller’s market

Sources: CREA MLS® HPI · Provincial Real Estate Boards · March 2026 release

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Six-City Benchmark Price: Year-over-Year Change

MLS® Home Price Index, March 2026 vs. March 2025

Largest Decline
Toronto −7.9%
Largest Gain
Montreal +5.8%
National HPI
−4.7%
Source: CREA MLS® Home Price Index, March 2026 release · Pegasus Mortgage Lending Center Inc. FSRA Lic # 11479

Toronto and Vancouver: Where Buyers Have Room to Negotiate

Take a breath if these two cities are on your shortlist — the market has actually moved your way. Both have seen benchmark prices drop near 7% year-over-year, and both now sit in balanced-to-buyer territory rather than the frenzied seller’s markets of recent years.

Toronto

The Greater Toronto Area benchmark price was $932,000 in March 2026, down 7.9% from a year earlier. Active listings are up, sales are running close to last year, and the average property is sitting on the market for around 47 days — meaningfully longer than spring 2025. For buyers, this can mean room to negotiate on price, conditions, and closing dates that simply wasn’t there 18 months ago.

The mortgage angle: softer prices make the purchase math easier, but they don’t change the OSFI stress test. You still need to qualify at a rate higher than your contract rate — that’s a federal rule that hasn’t moved. Our deeper Toronto market guide walks through what this means at specific price points.

Vancouver

Greater Vancouver’s benchmark sits at $1,101,700, down 6.7% year-over-year. The tone is similar to Toronto’s: more inventory than 2024, longer days on market, and buyers who have time to think rather than act in 24 hours. The December 2024 increase of the federal insured-mortgage cap to $1.5 million also matters here — it widened access for buyers in high-priced markets who don’t yet have a 20% down payment in cash.

None of this means prices won’t move again. CREA’s most recent forecast calls for stabilization through 2026, not a sharp recovery. But for a buyer ready to act, the leverage at the offer table is real.

Calgary and Montreal: Where Sellers Still Hold the Cards

The other side of the country tells a very different story. In Calgary and Montreal, supply is tight, demand is steady, and the offer-table dynamics from a few years ago haven’t fully unwound.

Calgary

Calgary’s benchmark price was $565,800 in March 2026, down a mild 2.7% from a year earlier — essentially flat in a market that’s seen far bigger moves elsewhere. What matters more is the supply side: Alberta as a whole had just 2.8 months of inventory, one of the tightest readings in the country. That’s a clear seller’s market.

For buyers, this typically means firm pricing, fewer conditions accepted, and fast-moving listings. A pre-approval and a rate hold matter more here than negotiating muscle. As Razi Khan, Founder and Mortgage Broker at Pegasus often tells clients, in tight markets the speed of your file matters as much as the strength of your offer. Our breakdown of the Calgary market shift goes deeper.

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Months of Inventory by Market

CREA classification: under 3.6 = seller’s market, 3.6–6.4 = balanced, over 6.4 = buyer’s market

Market
Months
Inventory Position
Read
Calgary
2.8
Seller’s
Edmonton
2.8
Seller’s
Ottawa
3.3
Seller’s
Montreal
3.9
Tight Bal.
Greater Toronto
4.3
Balanced
Greater Vancouver
5.0
Balanced
Seller’s market · under 3.6
Tight balanced · 3.6–4.5
Balanced · 4.5–6.4
Buyer’s · over 6.4
Source: CREA Statistics, March 2026 release · Pegasus Mortgage Lending Center Inc. FSRA Lic # 11479

Montreal

Montreal is the standout among major cities: the benchmark was $592,400 in March 2026, up 5.8% year-over-year. Sales were up 1.4% over the same month last year, plexes hit a new median high, and inventory remained under four months. By any reasonable measure, this is a market with momentum.

One Quebec-specific note for buyers: mortgage closings in the province go through a notary, not a lawyer, and Quebec’s 9% QST applies to mortgage default insurance premiums. Neither changes whether the market is a fit for you — they just shape your closing-cost math.

Ottawa, Edmonton and the Quieter Comebacks

Outside the four headline cities, the markets that often get overlooked are quietly telling their own stories. Ottawa’s benchmark slipped 2.1% to $617,700 with 3.3 months of inventory — a tight balanced market, with prices easing modestly. The federal labour market has been a softer-than-usual influence, and CMHC has flagged the capital region as one of the slower-recovery markets in 2026.

Edmonton’s benchmark sits at $413,700, down 2.1% year-over-year, but with the same 2.8 months of supply as Calgary. That makes it one of the most affordable major Canadian cities while also being one of the tightest. For buyers willing to look beyond the Toronto-Vancouver axis, the math here is often more forgiving — both at purchase and at renewal.

If your city isn’t on this list, the method in the next section will let you read it the same way our team does.

Reading Your City Right: A Five-Step Method

To accurately read any Canadian city’s housing market, check five indicators in order: the MLS® HPI benchmark price (not the average), the year-over-year direction, the sales-to-new-listings ratio, months of inventory, and average days on market. Layered together, they tell you whether the market favours you and roughly how much room you have to negotiate.
  1. 1
    Check the benchmark, not the average Average prices swing based on which homes happened to sell that month. The MLS® HPI benchmark price filters that noise — it’s the value of a typical home in that market, computed consistently over time. That’s the number to track.
  2. 2
    Read the year-over-year direction One month is weather; twelve months is climate. Compare today’s benchmark to the same month last year. That tells you whether your market is in a softening trend, holding, or genuinely lifting.
  3. 3
    Look at the sales-to-new-listings ratio This ratio measures how quickly the available inventory is being absorbed. Below 40% leans toward buyers; above 60% leans toward sellers; in between is balanced. For a deeper take, see how the sales-to-new-listings ratio works.
  4. 4
    Check months of inventory Under 3.6 months is typically a seller’s market; 3.6 to 6.4 is balanced; over 6.4 favours buyers. This is the single most useful indicator of negotiating room.
  5. 5
    Line it up against your mortgage scenario Take what you’ve learned about the city and overlay it on your own numbers: down payment, qualifying income, stress-tested payment, monthly comfort. A balanced market gives you time to do this carefully. A tight market means doing it before you’re ready to offer.
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National Benchmark Trend: 12 Months

Year-over-year change in the National Composite MLS® Home Price Index, April 2025 – March 2026

Current YoY
−4.7%
Consecutive Decline
14 Months
Below 2022 Peak
~20%
Source: CREA National Composite MLS® HPI, monthly series · Pegasus Mortgage Lending Center Inc. FSRA Lic # 11479

Six Mistakes Canadians Make Reading Their Local Market

The most common mistakes Canadians make reading their local housing market are confusing the average with the benchmark, treating national headlines as local truth, ignoring listings volume, assuming softer prices mean easier mortgage approval, waiting for the “bottom,” and assuming a city benchmark drop automatically affects their own home’s appraised value at renewal.
  • Confusing the average with the benchmark. Average prices swing every month based on which homes happen to sell. The MLS® HPI benchmark filters that noise out — it’s the truer signal.
  • Reading a national headline as a local truth. “Canadian home prices down 5%” means almost nothing if you’re shopping in Calgary or Montreal. The story is regional in 2026.
  • Ignoring listings and inventory. Price tells you yesterday’s story. Listings volume and months of inventory tell you next month’s direction.
  • Assuming softer prices mean easier mortgage approval. The OSFI stress test still applies. Lower prices help affordability; they don’t change the qualifying-rate math your lender uses. The bigger picture on what affordability really hinges on goes beyond price alone.
  • Waiting for the “bottom.” Buyers who try to time the floor usually miss it. Rate movement and listing supply often shift before prices do.
  • Thinking renewal equity is locked in by the listing market. Lenders order their own appraisals at renewal. A softer city benchmark may or may not flow through to your specific home’s assessed value.

Common Questions Canadians Are Asking This Spring

Why are home prices going up in Montreal but down in Toronto?

Montreal entered 2026 with tighter supply, steady demand, and a smaller affordability gap than Toronto. Toronto has seen more new listings reach the market and softer demand from investors and first-time buyers, pushing benchmark prices down roughly 7% year-over-year while Montreal’s have risen near 5%.

Which Canadian city has the cheapest housing right now?

Among major cities tracked by CREA, Edmonton typically has the lowest benchmark price, currently around $413,700. Saskatoon, Winnipeg, and several Atlantic Canada markets often run lower still. Affordability also depends on local incomes and provincial taxes, not just the listed price.

Is now a good time to buy a house in Toronto?

Toronto buyers in spring 2026 have more leverage than they’ve had in years — more listings, longer days on market, and benchmark prices roughly 7% below last year. Whether it’s right for you depends on your job stability, qualifying income, and how long you plan to hold the home.

How much is the average home in Vancouver in 2026?

The Greater Vancouver MLS® HPI benchmark price was $1,101,700 in March 2026, down 6.7% from a year earlier. The benchmark is a more reliable figure than the average sale price, which can swing based on the mix of homes sold in a given month.

Are Canadian condo prices still falling this year?

Condo prices remain under pressure in Toronto and Vancouver, where new completions added supply and investor demand softened. Other markets, including Montreal, have held up better. Condo trends often diverge from detached-home trends within the same city, so check the property-type breakdown.

What does “months of inventory” actually mean for me as a buyer?

Months of inventory measures how long current listings would take to sell at the current pace of sales. Under 3.6 months typically favours sellers; 3.6 to 6.4 is balanced; over 6.4 favours buyers. It’s the most direct gauge of how much negotiating room you have at the offer table.

Should I lock in a fixed mortgage rate before buying this spring?

A rate hold from a lender or broker can typically protect a quoted rate for 90 to 120 days while you shop. Whether to choose fixed or variable depends on your timeline, risk tolerance, and the rate spread at the moment you commit. A licensed broker can compare options across 50-plus lenders.

If my city’s prices have dropped, will my mortgage renewal be a problem?

Not automatically. Renewals don’t require a fresh appraisal in most cases, and as of November 2024 uninsured straight-switch renewals no longer need to re-qualify at the federal stress-test rate. A refinance, however, may trigger an appraisal — that’s where city price shifts can affect your accessible equity.

For more answers across mortgage scenarios, see our broader mortgage FAQ.

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This article is for informational purposes only and does not constitute financial advice. Speak with a licensed mortgage professional before making any mortgage decisions. Pegasus Mortgage Lending Center Inc. · FSRA Lic # 11479. All market data references reflect the CREA March 2026 release; figures are subject to change with subsequent monthly releases.

Razi Khan — Founder, CEO and Mortgage Broker at Pegasus Mortgage Lending

About the author

Razi Khan

Founder, CEO & Licensed Mortgage Broker · Pegasus Mortgage Lending · Toronto, Ontario · FSRA Lic # 11479

Razi Khan is the Founder, CEO, and a licensed Mortgage Broker at Pegasus Mortgage Lending Center Inc., based in Toronto. With over 20 years of experience in the Canadian mortgage industry, Razi has personally guided more than 3,000 clients through some of the most complex and high-stakes financial decisions of their lives — from first-time purchases in the GTA to refinancing strategies, alternative lending solutions, and cross-border mortgages for Canadians buying in the United States.

Razi founded Pegasus in October 2008, launching the brokerage at the height of a global financial crisis. He works across the full spectrum of borrower profiles, with particular expertise in complex files including self-employed borrowers, credit-challenged clients, and investors building multi-property portfolios.

Sources & References

  • CREA — National Composite MLS® Home Price Index, March 2026 release. crea.ca media hub
  • CREA Statistics — Major market benchmark prices and inventory by province and city. stats.crea.ca
  • CREA — 2026–2027 Resale Housing Market Forecast. crea.ca quarterly forecasts
  • CMHC — Housing Market Outlook 2026. cmhc-schl.gc.ca
  • Government of Canada — Insured mortgage cap raised to $1.5 million and 30-year amortization expanded, effective December 15, 2024. canada.ca
  • OSFI — Guideline B-20 Residential Mortgage Underwriting Practices. osfi-bsif.gc.ca
  • Bank of Canada — Policy interest rate held at 2.25%. bankofcanada.ca