Canadian home sales growth slows to 1% as mortgage rates rise

Canadian homeowners and buyers are facing a slower recovery of the housing market. The national average home price is forecast to rise 1.5% to $688,955 in 2026, a figure $10,000 lower than the January forecast. In March, the national average sale price fell 0.8% to $673,084. CREA's home price index, which represents the typical home, dropped 4.7% on a year-over-year basis. These shifts are driven by a jump in fixed mortgage rates tied to higher inflation and rising global economic uncertainty. The Canadian Real Estate Association downgraded its 2026 home sales forecast to 474,972 residential properties, representing 1% growth over 2025, down from a previous forecast of 5.1% growth. In March, national home sales fell 2.3% year-over-year.