Canadian Housing Market Ends 2025 on a Balanced Note, Setting the Stage for Spring 2026

Buyers and sellers are embracing a calmer, strategic market as 2025 ends quietly and optimism grows for a spring revival in 2026.

January 15, 2026 – National home sales edged down 2.7% in December, marking a soft landing to an otherwise stable second half of the year. Prices declined as well, falling 4% year over year to an average of $673,335.00. With new listings down 2% and inventory sitting at 4.5 months of supply, the market remains broadly balanced. For buyers, sellers, and real estate professionals, this environment offers room for strategy, preparation, and long-term thinking.

Balanced and Stable at Year-End

After a period of rapid ups and downs, the end of 2025 finds the housing market on a much steadier footing. Supply and demand are roughly in equilibrium. At the current pace of sales, there is about 4.5 months of inventory, just shy of the long-term norm of 5 months. This means we are neither in a frenzied seller’s market nor a stalled buyer’s market, but something in between. Buyers have become more cautious and deliberate, and sellers are adjusting their price expectations to these conditions. There’s no panic on either side. In fact, the quieter year-end has allowed both buyers and sellers to catch their breath and plan their next steps.

“The past few years have pushed Canadians to rethink what stability really means in real estate,” noted Karim Kennedy, Chief Executive Officer of Coldwell Banker Canada. “Now we are seeing people make decisions with clearer intentions. They aren’t chasing the market. They’re acting when the timing and lifestyle fit. That shift will be key in how the next phase of the housing cycle unfolds.”

In many regions, sellers are making price concessions to close before year-end, while buyers are using this window to assess affordability and build a plan. The market may feel quieter, but it is not dormant. Behind the scenes, Canadians are preparing for what comes next.

Where Prices Stand Heading into 2026

Home prices in Canada have largely levelled off after the swings of the past few years. In December, the national average price was essentially flat compared to a year earlier, signalling that overall values have held their ground. The small declines that do show up in the index numbers are mostly the after-effect of earlier price surges in a few hot markets. 

Most of the slight year-over-year dip in values came from Canada’s priciest regions like Toronto, Vancouver and parts of Southern Ontario that saw price spikes during the pandemic boom. By contrast, many smaller cities and more affordable areas (such as parts of the Prairies and Quebec) have managed to hold steady or even see slight gains.

Trends to Watch

Canadian millennials continue to defy expectations by leading homebuying demand. According to Wahi’s 2026 Homebuyer Intentions Survey, 25% of millennials say they are likely to purchase a home this year, up from 23% in 2025. Overall demand remains steady at 17% across all age groups, even amid persistent concerns about costs, employment, and affordability. While Gen Z interest declined slightly to 15%, Gen X intentions held at 18%, and baby boomers edged up to 10%.

This rising interest among millennial buyers is a signal that the spring market could see meaningful engagement from a key demographic. Many are now financially prepared, more informed, and motivated by lifestyle goals rather than pure investment.

“Millennials aren’t waiting for the perfect conditions anymore. They’re moving forward with clear priorities and smart preparation,” explained Hashim Arthur, Chief Operating Officer of Coldwell Banker Canada. “We’re seeing more first-time and move-up buyers entering the market with a game plan and trusted advice behind them. Their confidence is real, and it’s reshaping the narrative as we head into 2026.”

Clarity and Confidence Ahead

The quiet close to 2025 has created space for reflection and readiness. Sellers are beginning to prepare listings for spring. Buyers are reconnecting with agents and watching for opportunities. Interest rates remain low compared to last year, and inventory is still in balance.

Spring 2026 is shaping up to be a moment of renewed momentum with a return to a more grounded, confident market. Whether you are planning to buy or sell, the best strategy is preparation. 

Whether buying, selling or simply exploring your options, Coldwell Banker Canada sales professionals are here to help you move forward with clarity, confidence, and care.