OTTAWA – Canada Mortgage and Housing Corp. says it now sees home sales and prices declining this year, a downgrade from its earlier forecast, before the market returns to modest growth next year and in 2028.
CMHC says a number of factors, including economic uncertainty, slower population growth and borrowing costs, are expected to weigh on activity in the housing market.
The agency’s baseline forecast now expects 457,200 home sales in 2026 with an average home price of $675,200, down from 470,314 homes sold in 2025 with an average price of $679,543.
The latest forecast also marks a decrease from its previous outlook in February, when it expected sales and prices to rise compared with last year.
CMHC says uncertainty remains high as geopolitical tensions are expected to temporarily raise inflation and Canada-U.S. trade uncertainty continues to affect investment and hiring decisions.
Housing starts are expected to reach 241,400 in 2026, down from 259,028 in 2025, with builders facing weak demand, elevated inventories and high construction costs.
This report by The Canadian Press was first published July 22, 2026.
