The Canadian Real Estate Association (CREA) has released its latest market report, and while December 2025 saw a slight slowdown, the bigger picture suggests opportunity for both buyers and sellers as we head into 2026. Let’s break down the numbers, analyze what they mean, and share practical advice for navigating today’s market.
What Happened in December?
- Home sales dipped 2.7% month-over-month across Canadian MLS® Systems.
- Annual transactions totaled 470,314 units, down 1.9% from 2024.
- New listings fell by 2%, marking the fourth straight monthly decline.
- Home prices softened slightly, with the MLS® Home Price Index down 0.3% from November and 4% year-over-year.
- Average home price: $673,335, virtually unchanged from December 2024.
In short, December was quieter than expected, with fewer sales and listings. However, CREA notes this slowdown was due to unrelated dips in major markets like Vancouver, Calgary, Edmonton and Montreal—not a sign of a long-term trend.
Why This Matters
Despite the December lull, CREA expects sales to pick up in spring 2026, fuelled by:
- Four years of pent-up demand
- Interest rates near their lowest point
- Inventory levels still below long-term averages
This means the current market is balanced, with a sales-to-new listings ratio of 52.3%—right in the range that indicates neither a strong buyer’s nor seller’s market.
What Does This Mean for Buyers?
Prices are stable. With the national average price virtually unchanged year-over-year, buyers aren’t facing runaway price growth.
Interest rates are favourable. CREA suggests rates are “about as good as they are going to get,” making now a smart time to lock in financing.
More choice coming soon. Inventory is expected to tighten again in spring, so acting early could mean less competition.
Tip for Buyers:
Start your mortgage pre-approval process now and explore government programs for first-time buyers. This positions you to act quickly when spring listings hit.
What Does This Mean for Sellers?
Conditions are balanced. With 4.5 months of inventory nationally, sellers still have leverage, especially in desirable markets.
There could be a spring surge ahead. Listing now or preparing for spring could help you capitalize on increased demand.
Price strategy matters. December’s slight price dip suggests buyers are sensitive to value—competitive pricing will attract offers.
Tip for Sellers:
Work with a REMAX agent to set a realistic price and consider minor upgrades to stand out in a balanced market.
Bottom Line
While December’s numbers show a slowdown, don’t mistake this for a downturn. CREA expects a more active market in 2026, driven by pent-up demand and favorable interest rates. Whether you’re buying or selling, now is the time to prepare—because the spring market could move fast.
Ready to make your move? Start your search today.
