The national average home price in Canada fell to approximately C$640,000 in February 2026, down roughly 12% from the February 2022 peak of C$816,000. The correction has been driven by the Bank of Canada's aggressive rate hiking cycle (which took rates from 0.25% to 5.0%) and the mortgage stress test, which requires buyers to qualify at a rate 2 percentage points above their contracted rate.
Regional Differences
Toronto, Canada's largest real estate market, saw average prices fall to approximately C$1.05 million from a peak of C$1.33 million. Vancouver prices declined to C$1.12 million. In contrast, markets in the Prairie provinces (Alberta, Saskatchewan, Manitoba) have been more resilient, with some areas seeing modest price growth driven by affordability-driven interprovincial migration.
The condominium segment has been hit hardest, with investor-owned condos in Toronto seeing vacancy rates rise to 3.5%, the highest since 2010. Many investors who purchased pre-construction condos during the boom are now completing purchases at prices above current market value, leading to increased listings and downward price pressure.
Mortgage Renewals
Canada faces a significant wave of mortgage renewals in 2025-2026. Approximately 2.2 million mortgages taken at ultra-low rates during 2020-2021 are set for renewal at substantially higher rates. The Canada Mortgage and Housing Corporation (CMHC) estimates that average monthly payments could increase by C$500-800 for affected borrowers.
The Bank of Canada began cutting rates in June 2024, reducing the overnight rate to 3.75% by February 2026. However, this has provided only partial relief, as current rates remain well above the sub-2% levels many borrowers secured during the pandemic.
For Canadian housing data, visit CMHC. For Bank of Canada rates, see Bank of Canada.