The Canadian Real Estate Association (CREA) has attributed the decline 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% decrease on a month-over-month basis in January.
Shaun Cathcart, CREA’s senior economist, mentioned that the slowdown in January was more pronounced in parts of Ontario, where severe winter weather conditions were prevalent. He highlighted that the decline in housing transactions was concentrated in central and southwestern Ontario, areas directly impacted by a major storm in the third week of January.
The inclement weather likely deterred potential buyers from attending house showings, as noted by Hamilton-area real estate agent Joe Ferrante. While the harsh weather played a role in reducing activity, Ferrante suggested that the subdued market conditions from late 2025 continued into January.
Despite the sluggish January, CREA remains optimistic about its 2026 forecast and does not anticipate any changes based on the winter performance. The inventory of housing available for sale in Canada at the end of January was approximately 4.9 months, aligning closely with the long-term average of five months.
Looking ahead, Cathcart mentioned that some buyers may be waiting for lower interest rates, but there are no imminent signs of rate cuts. The Bank of Canada had lowered its key interest rate to 2.25% in October and has maintained it since.
Affordability remains a challenge for first-time buyers, given the combination of housing prices and mortgage rates. The national average home price in January, based on the national composite MLS home price index, was $652,941, showing a 2.6% decrease from the previous year. CREA forecasts a modest 2.8% increase for the same metric in 2026.
Regionally, CREA noted year-over-year price declines in British Columbia, Alberta, and Ontario, which were offset by gains in other provinces.
