The Canadian housing market is showing promising signs of recovery this spring, with home sales increasing by 12% compared to the same period last year. Major cities like Toronto and Vancouver are leading the rebound as mortgage rates stabilize.
Market Recovery Indicators
According to the Canadian Real Estate Association (CREA), national home sales rose for the third consecutive month in March 2026. The average home price now sits at $685,000, up 4.2% from February but still 8% below the peak seen in early 2024.
“We’re seeing renewed confidence among buyers,” said Shaun Cathcart, CREA’s senior economist. “The rate pause from the Bank of Canada has given people the certainty they needed to get back into the market.”
First-time buyers are returning in significant numbers, particularly in the condominium segment. Toronto saw condo sales jump 18% year-over-year, while Vancouver experienced a 15% increase.
Regional Variations
Not all markets are recovering equally. Calgary and Edmonton continue to outperform, driven by strong population growth and relatively affordable prices. Montreal’s market remains flat, with sales volumes unchanged from last year.
The federal government’s new First Home Savings Account program, launched in January, has helped approximately 450,000 Canadians save for their down payment with tax advantages.
However, housing affordability remains a significant challenge. The average home still costs more than eight times the median household income, well above the historical average of five times.
Source: CTV News
Photo: Unsplash
