2026 Housing Market Outlook: Finding Equilibrium in a Cooling Economy

With Canadian average home prices still well below their 2022 peak, low investor demand and interest rates unlikely to fall further, Canada’s housing correction may take years, not months, to resolve. BMO’s Robert Kavcic returns for a fourth consecutive year to share his outlook for the 2026 real estate market, offering sector- and region-specific breakdowns for a comprehensive view of Canadian housing dynamics.