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 decreased by 5.8% month-over-month in January.
Shaun Cathcart, CREA’s senior economist, explained that the slow January was particularly pronounced in parts of Ontario, where severe winter storms impacted the market. Cathcart mentioned that the housing transactions were significantly affected in central and southwestern Ontario, areas heavily hit by a storm in the third week of January.
The extreme weather conditions, including frigid temperatures and heavy snowfall, likely deterred potential buyers from attending house showings, according to Hamilton-area real estate agent Joe Ferrante. However, Ferrante noted that the reduced activity in January was a continuation of the sluggish market trend seen at the end of 2025.
Despite the subdued performance in January, CREA remains optimistic about its 2026 forecast and does not anticipate any adjustments based solely on the month’s underperformance. The housing inventory levels at the end of January were reported to be around 4.9 months, aligning closely with the long-term average of five months.
While some buyers may be waiting for lower interest rates before making a purchase, Cathcart clarified that there are currently no indications of imminent rate cuts. The Bank of Canada had lowered its key interest rate to 2.25% at the end of October but has maintained this rate since then.
Looking ahead, CREA expects a modest 2.8% increase in the national average home price for 2026, as per the national composite MLS home price index. Regionally, price declines were noted in British Columbia, Alberta, and Ontario, offsetting gains in other provinces.