The Canadian Real Estate Association (CREA) attributes the decline in housing sales in January to severe winter conditions. According to CREA’s recent data, national housing sales dropped by 5.8% compared to the previous month.
Shaun Cathcart, CREA’s senior economist, mentioned that the slow January was particularly noticeable in parts of Ontario, where harsh winter weather affected transactions. He explained that the central and southwestern regions of Ontario were significantly impacted by a major storm in late January, hindering people’s ability to engage in real estate activities.
Joe Ferrante, a real estate agent in the Hamilton area, acknowledged that the cold and stormy weather might have deterred potential buyers from attending property viewings. However, he noted that the reduced activity in January was a continuation of the sluggish market trend observed at the end of 2025.
Despite the challenging January, Cathcart emphasized that CREA maintains its 2026 forecast, anticipating an improvement in the housing market. The organization reported that Canada had approximately 4.9 months of housing inventory available for sale by the end of January, aligning with the long-term average of five months.
Regarding interest rates, Cathcart mentioned that some buyers are possibly waiting for lower rates, but there are no imminent changes expected. The Bank of Canada had decreased its key interest rate to 2.25% in late October but has not made any adjustments since then.
CREA highlighted that the national average home price in January was $652,941, a 2.6% decrease from the previous year. The association’s 2026 forecast projects a modest 2.8% increase in this metric. Regionally, CREA noted price declines in British Columbia, Alberta, and Ontario, which offset gains in other provinces.
