Canadian Home Sales Adjust About 5% in 2026

A bank economist cut Canada's housing forecast, expecting home sales to ↓~5% in 2026 as higher government bond yields keep fixed mortgage costs elevated.
Avg. Canadian home prices are projected to stay roughly flat in 2026, then edge up by <2% in 2027 rather than rebound sharply.
The revised outlook kept 5-yr Canada bond yields near the mid-3% range through Late-Q4, with a gradual decline expected across 2027 overall.
Ontario and British Columbia were expected to see sales improve in 2027, while Alberta was expected to lead Canadian price growth overall.
The modest recovery depended on bond yields starting to ease in Late-Q4, alongside the central bank holding policy steady through 2027 overall.