Real estate experts predict an upswing in home sales, but continued price declines across Canada in the new year.

Looking ahead to 2026, home sales are expected to increase by 3.4 per cent next year, according to Re/Max Canada’s 2026 Housing Market Outlook. This follows signs of renewed buyer intent earlier this fall, compared to the first half of the year, Re/Max stated in the report.

The market has been sluggish in 2025.

Home sales fell year-over-year in 32 of 38 markets Re/Max analyzed between Jan. 1 and Oct. 31, 2025. At the same time, the number of listings increased year-over-year—by as much as 21 per cent in Ontario alone, contributing to average price declines in 2025.

Re/Max predicts a further home price decline of -3.7 per cent in 2026.

In the Greater Toronto Area and surrounding suburbs, price adjustments, increased listings, and declining interest rates are creating conditions favourable for buyers, though affordability pressures remain, particularly for first-time buyers.

Year-over-year, home prices in the Greater Toronto Area fell by 3.5 per cent, from 2024 to 2025, from $1,127,525 to $1,088,166, the report found.

In Toronto, the average price dropped by 4.2 per cent to $1,074,978; in Mississauga, the average price dropped by six per cent to $1,003,561. Brampton’s average dropped by 6.8 per cent to $942,458.

For 2026, Re/Max predicts another 3.5 per cent price drop to an average of $1,037,354 in Toronto.

In Brampton, Re/Max predicts an increase of four per cent to an average of $980,156.

Mississauga could see a price jump of three per cent to $1,033,668 in 2026, Re/Max said.

A Leger survey commissioned by Re/Max reveals that one in 10 Canadians plans to buy a home in the next 12 months, half of them being first-time buyers.

An INsauga poll also found that 23 per cent of people would consider buying a home since the last interest rate cut.

One quarter of Canadians (23 per cent) said they’d be ready to enter the market if interest rates dropped another 0.5 to one per cent, the Leger survey found.

“Amid looming economic clouds, Canadians are maintaining their interest in homeownership,” says Don Kottick, president, Re/Max Canada. “The resilience that began to emerge in the fall is anticipated to continue into 2026, with first-time buyers in particular finding creative ways to save and enter the market.”

Return-to-office mandates may impact some home decisions. While nearly half of respondents overall do not believe return-to-office will impact their situation , respondents aged 18 to 34 and those planning to buy in the future are thinking more about how this might affect their search and 17 per cent of Canadians are concerned about return-to-office mandates.

“Return-to-office mandates are beginning to weigh on first-time buyers’ decisions, prompting many to reconsider not just where they want to live, but how their daily routines, commute times, and lifestyle needs will fit into an in-person work environment,” says Kottick.

See the full housing outlook report from Re/Max here.

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