Canada Home Prices to Hit Peak Levels in 2025, Reach New Highs by 2026



The Canada Mortgage and Housing Corp. predicts home prices could match peak levels by next year and soar to new highs by 2026, as per their latest housing market outlook.

The Canada Mortgage and Housing Corp. (CMHC) has released its latest housing market outlook, predicting that home prices could reach peak levels seen in early 2022 by next year and hit new highs by 2026. Despite an increase in rental housing supply expected in 2023, the CMHC warns that demand will outpace supply, leading to higher rents and lower vacancy rates in the coming years. Affordability in the home ownership market is also a concern for the next three years, as declining mortgage rates and strong population growth are expected to drive a rebound in home sales and prices.


Canada Home Prices to Hit Peak Levels in 2025, Reach New Highs by 2026

According to the CMHC, Canada home sales dropped by around one-third from their peak in early 2021 to the end of 2023, with prices falling by nearly 15 per cent over that time. However, the agency notes that the pool of potential homebuyers has grown due to robust population growth, increased savings, and higher incomes. The resurgence in the Canadian housing market is expected to be driven by a shift in demand towards lower-priced homes and markets across Canada.

Looking ahead, the CMHC predicts that sales activity from 2025 to 2026 will slightly surpass the past 10-year average but remain below the record levels seen from 2020 to 2021 due to the high cost of housing. Housing starts in Canada are expected to decline this year before recovering in 2025 and 2026, reflecting the impact of higher interest rates on new construction.

On a regional basis, the CMHC forecasts that Ontario and B.C. will drive the decline in national housing starts this year, while the Prairie provinces are expected to perform well due to affordable home prices and a stronger economic outlook. In Quebec, housing starts are expected to grow but remain below pre-pandemic levels, while the Atlantic region will see less pressure on new home construction due to weaker population growth.

The CMHC's housing market outlook paints a picture of a rebounding housing market with rising prices and sales activity, driven by factors such as population growth, declining mortgage rates, and shifting demand towards lower-priced homes. However, affordability remains a concern, and challenges such as financing costs may impact developers' ability to boost construction in certain regions.

Canada Home Prices to Hit Peak Levels in 2025, Reach New Highs by 2026

Support Ogusyis by making a contribution – no matter how small.


Enter your amount
£
Enter your amount
£
Enter your amount
£
Yourname
Email
Phone


US Real Estate Investors Still Focused on Portugal: A Safe Haven for Property Acquisition?

Discover why the US real estate investors are turning to Portugal as a secure and appealing destination for real estate investments.

Discover why the US real estate investors are turning to Portugal as a secure and appealing destination for real estate investments.

Read more

UK House Prices Still Unaffordable for Many Despite Rising Wages

High mortgage rates and soaring bills make UK house prices unattainable for many, despite wage increases above inflation.

High mortgage rates and soaring bills make UK house prices unattainable for many, despite wage increases above inflation.

Read more

Belgium's Real Estate Prices Surge, Straining Purchasing Power

Discover how rising real estate prices in Belgium are impacting purchasing power, as interest rates remain stagnant. Stay informed.

Discover how rising real estate prices in Belgium are impacting purchasing power, as interest rates remain stagnant. Stay informed.

Read more

Dutch Housing Market: 540 Tenants Challenge Rent Increase by CBRE and Nationale-Nederlanden

In a groundbreaking move, Dutch tenants take legal action to stop rent hikes, following recent court rulings against institutional investors. Stay updated with the latest developments.

In a groundbreaking move, Dutch tenants take legal action to stop rent hikes, following recent court rulings against institutional investors. Stay updated with the latest developments.

Read more

House Prices in Ireland Surge Amid Severe Property Shortage

Discover the latest Daft.ie House Price Report revealing a 3.8% increase in Q2 2024, with prices soaring by 35% since Covid-19.

Discover the latest Daft.ie House Price Report revealing a 3.8% increase in Q2 2024, with prices soaring by 35% since Covid-19.

Read more

UK Tax Rules on Second Homes: Can They Solve the Housing Crisis?

Owners of empty properties in England, Wales, and Scotland may face higher council tax rates, but experts are unsure if this will truly address the housing shortage.

Owners of empty properties in England, Wales, and Scotland may face higher council tax rates, but experts are unsure if this will truly address the housing shortage.

Read more

Portugal Real Estate Market: Sales Decline, Prices Up 7%

Stay up to date with the latest trends in Portugal real estate market with the today update on housing prices, showing a significant 7% increase since the beginning of the year. Explore the impact of decelerating prices on the market.

Stay up to date with the latest trends in Portugal real estate market with the today update on housing prices, showing a significant 7% increase since the beginning of the year. Explore the impact of decelerating prices on the market.

Read more

The US Housing Market Stuck: Sales Slow Despite Lower Interest Rates

Despite dropping mortgage rates, the US housing market remains stagnant with no immediate signs of improvement. Experts predict recovery may not happen until 2026.

Despite dropping mortgage rates, the US housing market remains stagnant with no immediate signs of improvement. Experts predict recovery may not happen until 2026.

Read more

Idealista, Leading Spanish Real Estate Portal, Acquired by British Fund Cinven

Discover the €2.9 billion acquisition of Idealista, the top real estate site in Spain, Italy, and Portugal, by British fund Cinven.

Discover the €2.9 billion acquisition of Idealista, the top real estate site in Spain, Italy, and Portugal, by British fund Cinven.

Read more

Copyright © Ogusyis. All rights reserved. The Content may not be copied, distributed,  republished, uploaded, posted or transmitted in any way without the prior written consent of Ogusyis.