The Canadian Real Estate Association (CREA) has attributed the slowdown in housing sales in January to the harsh winter weather conditions. According to the latest data released by CREA, national housing sales experienced a 5.8% decline in January compared to the previous month.
Shaun Cathcart, CREA’s senior economist, highlighted that the impact was particularly significant in parts of Ontario, where severe winter storms affected the market. He mentioned that the housing transactions were lower than expected, mainly concentrated in central and southwestern Ontario, which were hit hard by a storm in late January.
The extreme weather conditions not only made it difficult for people to venture out but also disrupted house showings, as stated by Joe Ferrante, a real estate agent in the Hamilton area. Ferrante noted that while the weather played a role in deterring buyers, the subdued market trend from late 2025 continued into January.
Despite the sluggish performance in January, CREA remains optimistic about its 2026 forecast and does not anticipate any adjustments based solely on the month’s performance. The organization reported that there was approximately 4.9 months of housing inventory available for sale in Canada at the end of January, aligning with the long-term average of five months.
While some buyers may be waiting for lower interest rates, Cathcart pointed out that there are no imminent changes in interest rates, as the Bank of Canada has maintained its key rate at 2.25% since October. CREA’s forecast for 2026 predicts a modest 2.8% increase in the national average price of homes.
Regionally, CREA noted that prices in British Columbia, Alberta, and Ontario experienced year-over-year declines, offsetting gains seen in other provinces. Despite challenges posed to first-time buyers in terms of affordability, CREA remains positive about the overall housing market outlook for the year.