Housing Activity Is Finally Rebounding, Says the Bank of Canada: What Buyers and Sellers Should Know
The Canada housing market rebound in 2026 now has the Bank of Canada’s attention. In its September 2, 2026 rate announcement, the Bank said that “following several weak quarters, there was some rebound in housing activity.” The sales data backs that up, but it also shows a recovery that is steady rather than fast, and new headwinds from higher fixed mortgage rates and tariffs.
- Housing activity: The Bank of Canada reported "some rebound in housing activity" in its September 2026 rate announcement.
- Home sales: National home sales increased 5.5% in May, followed by gains of 0.5% in June and July before edging down 0.7% in August, according to CREA.
- Home prices: Canada's national benchmark home price was unchanged from July to August and down 3% year over year, marking the smallest annual decline since October 2025.
- Hot Pocket Communities: The REMAX 2026 Hot Pocket Communities Report found detached-home sales increased year over year in 61% of 83 markets across the GTA, Greater Vancouver and the Fraser Valley, while values rose in only 6% of markets.
- Balanced conditions: Most markets remain in balanced territory, giving buyers more time to make decisions while providing sellers with a steady, though price-sensitive, pool of potential purchasers.
- Potential headwinds: CREA says higher fixed mortgage rates and the possibility of a future Bank of Canada rate hike could slow further market momentum.
Is the Canadian Housing Market Recovering?
Yes, gradually, and unevenly. Three signals point to recovery: sales climbed from May through July, prices stopped falling month over month, and most markets have moved into balanced territory. CREA reported a national sales-to-new listings ratio of 49.1% in August and 4.8 months of inventory, both within the range CREA considers balanced.
Three signals point to caution. Sales dipped in August. Actual activity remains below 2025 levels. And CREA’s senior economist said in the August report that fixed mortgage rates have already increased on higher bond yields, and that a rate hike is priced in by markets, which is expected to dampen further momentum heading into 2027.
The Canada Housing Market Rebound in 2026
Sales were flat to weak through the winter, then jumped in May as a delayed spring market arrived.
| Month (2026) | Sales, Month over Month | Sales vs. Same Month in 2025 (Actual) | MLS Home Price Index, Year over Year |
|---|---|---|---|
| May | +5.5% | -5.1% | -4.1% |
| June | +0.5% | +0.9% | -3.6% |
| July | +0.5% | -5.3% | -3.3% |
| August | -0.7% | -6.9% | -3.0% |
Sources: CREA national releases for May, June, July and August 2026
By June, CREA said national activity was about 7% above where it stood in March. In June, the national benchmark price held steady for the first time since January 2025, and it stayed close to flat through the summer. In August, CREA’s senior economist described sales and prices as largely unchanged for a fourth consecutive month.
The rebound is a recovery from a slow first half, not a return to pandemic-era conditions. Actual sales in July and August were still below the same months in 2025, and CREA’s July forecast calls for 2026 sales to finish 1.4% below 2025 nationally.
Where Detached Homes Are Rebounding
The REMAX 2026 Hot Pocket Communities Report looked at detached home sales in 83 markets across the Greater Toronto Area, Greater Vancouver and the Fraser Valley from January 1 to June 30, 2026. It found that 61% of those markets (51 of 83) posted detached sales ahead of 2025 levels, while only 6% (5 of 83) saw values rise. The report credits sharper pricing and a narrowing gap between what buyers offer and what sellers ask for with pulling buyers back into the market.
| Region | Share of Markets With Higher Detached Sales, Q1/Q2 2026 |
|---|---|
| Fraser Valley | All six communities |
| Toronto (416) | 60% (21 of 35) |
| Greater Vancouver | Nearly 59% (10 of 17) |
| GTA 905 Region | 56% (14 of 25) |
Source: REMAX 2026 Hot Pocket Communities Report
The report’s top five markets by detached sales growth were New Westminster in Greater Vancouver (up 58.1%), Toronto’s C07 district of Newtonbrook West, Willowdale West, Westminster-Branson and Lansing-Westgate (up 52.5%), Toronto’s C14 district of Newtonbrook East and Willowdale East (up 30.8%), Aurora in York Region (up 30.7%), and Toronto’s St. Andrews-Windfields (up 26.8%).
Across the GTA, the report cites Toronto Regional Real Estate Board figures showing 14,444 detached sales in the first half of 2026, up 3.2% from 13,991 a year earlier, while overall values fell about 5%, from $1,418,849 to $1,347,071. In Greater Vancouver, detached sales rose almost 3%, to 3,363 from 3,273. REMAX Canada covers the regional details in why buyers are choosing detached homes again and its look at detached home trends in Greater Vancouver and the Fraser Valley.
What Buyers Should Know
- Balanced markets give you time: With national inventory near its long-term average, you can compare homes and include conditions without the pressure of multiple offers in most areas.
- Prices have been relatively stable lately: The national benchmark price was unchanged from July to August, although it remained below its August 2025 level.
- Lock in your financing early: Fixed rates have moved up with bond yields, so a pre-approval with a rate hold protects your budget while you shop.
- Look where value is: The Hot Pocket report found demand strongest in relatively affordable pockets, including detached homes priced between $1 million and $1.5 million in the GTA’s 905 region.
What Sellers Should Know
- Price to today’s market: In the Hot Pocket report, sales rose in most markets while values rose in very few, which means buyers are responding to realistic pricing.
- Supply is tightening in some segments: GTA detached new listings were 8,470 in June 2026, compared with 9,307 in the same period of 2025, according to the report.
- The fall market is active: CREA noted a jump in new listings in late August as sellers got an early start on the fall season, so presentation and pricing matter to stand out.
- Plan your purchase at the same time: If you are moving up, these tips on whether to sell first or buy first can help you manage the timing.
Make Your Move With a REMAX Agent
A rebound shows up differently street by street. A REMAX agent can show you how sales and prices are moving in your neighbourhood, not just nationally. Contact a REMAX agent to see what the 2026 recovery looks like where you want to buy or sell.
Ready to start your home search? Connect with a REMAX agent or visit Remax.ca to browse listings near you.
Is the Canadian Housing Market Recovering?
Yes, gradually. National home sales rose from May through July 2026, and prices have remained relatively stable since spring, according to CREA. The Bank of Canada also reported some rebound in housing activity in September. Sales slipped 0.7% in August, however, and higher fixed mortgage rates could slow the pace of recovery.
What Did the Bank of Canada Say About Housing in September 2026?
In its September 2, 2026 rate announcement, the Bank of Canada said that following several weak quarters, there was some rebound in housing activity. Its summary of deliberations, published on September 16, added that the rebound occurred despite continued softness in condominium markets in Toronto and Vancouver.
Are Home Prices Going Up in Canada?
Not at the national level. CREA's MLS Home Price Index was unchanged from July to August 2026 and down 3% year over year, representing the smallest annual decline since October 2025. The national average sale price reached $668,219 in August, up 0.6% compared to the same month last year.
Is Now a Good Time to Sell a House in Canada?
It depends on your local market and your next move. Most Canadian housing markets are currently balanced, and buyers remain active when homes are priced appropriately. A local REMAX agent can evaluate recent sales activity in your neighbourhood and help determine whether listing this fall or waiting may be the better strategy.
