As of DEC 12, 2025Market update

Real Estate in Canada: Market Trends, Prices, and FAQ

Canada's real estate market is showing early signs of renewed momentum after a quiet start to the year. Whether you're buying, selling, or simply trying to understand current home prices in Canada, this guide breaks down the latest CREA data, regional trends, and what they mean for your decisions.

This article covers national and provincial price trends, what's driving the market, practical tips for buyers and sellers, and answers to the most common questions about Canadian real estate right now.

Where the Canadian Market Stands

As of May 2026, the Canadian Real Estate Association (CREA) reported that the national average home price climbed to $702,079, up 1.5% from $691,717 in May 2025. This marked the first time in 23 months that the national average price moved back above $700,000, following a 5.5% month-over-month increase in home sales. CREA's sales-to-new-listings ratio also tightened to 49.2% in May 2026, up from 46.2% in April — a sign that conditions are shifting toward a somewhat stronger, though still broadly balanced, market.

It's worth distinguishing between two different CREA figures that often get confused: the average price (a simple average of all sales, which can be skewed by a handful of very expensive transactions) and the MLS® Home Price Index (HPI) benchmark price (a more stable measure of a "typical" home). As of May 2026, the national benchmark price was $667,700, still down 4.1% year-over-year, even though the average price was up 1.5% over the same period. Both figures are accurate — they're just measuring slightly different things, and the gap between them reflects a market where higher-priced sales picked up disproportionately in May.

Looking further ahead, CREA's most recent quarterly forecast (published April 16, 2026) projects the national average home price to rise a modest 1.5% for all of 2026 to approximately $688,955, with the association cautioning that this figure could be revised given ongoing oil-price and inflation uncertainty at the time of the forecast.

Regional Trends: Where Prices Are Rising and Falling

The national average price masks significant regional variation. As of May 2026, British Columbia, Alberta, and Ontario were the only provinces still posting year-over-year benchmark price declines, while several other provinces — particularly in Atlantic Canada and the Prairies — were setting record highs.

New Brunswick, Newfoundland and Labrador, Saskatchewan, Quebec, and Alberta all reached their highest-ever average home sold prices in May 2026. On a year-over-year benchmark basis, Newfoundland led the country with growth of 11.3%, followed by New Brunswick at 10.1%, Saskatchewan at 3.8%, and Quebec at 3.4%. By contrast, the largest year-over-year benchmark declines were in Ontario (-5.5%) and British Columbia (-5.2%).

Market balance also varies sharply by province. As of May 2026, British Columbia remained the most buyer-friendly provincial market in the country with 6.7 months of inventory, while Saskatchewan (2.8 months) and Alberta (2.9 months) remained the tightest, seller-friendly markets.

Average Home Prices by City

The table below shows average home prices in several major Canadian cities and provincial markets, based on CREA and local real estate board data as of May 2026.

City / Market	Average Home Price	Year-over-Year Change
Canada (national average)	$702,079	+1.5%
Greater Vancouver	$1,235,658	n/a (month-over-month +2.1%)
Montreal	$674,943	+2.6%
Calgary	$665,695	n/a
Quebec (province-wide)	$568,580	+3.7%
Quebec City	$503,091	n/a
Edmonton	$491,794	n/a

Note: "n/a" indicates that a directly comparable year-over-year figure was not available in the source data at time of writing. Figures are average sale prices reported by CREA and regional real estate boards for May 2026 and are not seasonally adjusted.

Practical Tips for Buyers and Sellers in the Current Market

With market conditions varying so much by region, a one-size-fits-all approach doesn't work well right now. Here are some practical considerations:

If you're buying in a tight market (Alberta, Saskatchewan): Get a mortgage pre-approval before house hunting, since low inventory (under 3 months of supply) often means competitive conditions and less room to negotiate on price.
If you're buying in a buyer-friendly market (British Columbia, PEI): Higher months of inventory generally gives buyers more negotiating leverage on price, conditions, and closing timelines.
If you're selling: Local conditions matter more than national headlines. A national average price increase doesn't guarantee a stronger market in every city — check your specific region's months of inventory and recent sales-to-list price ratios before setting an asking price.
For both buyers and sellers: Track the gap between average price and benchmark (HPI) price in your local market. A widening gap can signal that a small number of high-end sales are skewing the average, which matters for realistic price expectations on a typical home.

Use our Affordability Calculator to estimate what you can realistically afford to buy given current rates, or our Mortgage Calculator to model monthly payments at today's pricing.

Frequently Asked Questions About the Canadian Real Estate Market

What is the average home price in Canada right now?

As of May 2026, CREA reported the national average home price at $702,079, up 1.5% from $691,717 in May 2025. This was the first time in 23 months the average moved back above $700,000. The national benchmark (HPI) price, a more stable measure of a typical home, was $667,700 in the same month, still down 4.1% year-over-year.

Is now a good time to buy a home in Canada?

This depends heavily on your local market and personal financial situation, and isn't something we can answer with certainty for every reader. As of May 2026, conditions varied widely by province — British Columbia remained the most buyer-friendly market with 6.7 months of inventory, while Alberta and Saskatchewan remained tight, seller-favoured markets with under 3 months of supply. This is general market information, not personalized financial advice; confirm your specific situation with a mortgage professional before making a purchase decision.

Why are home prices rising in some provinces and falling in others?

As of May 2026, British Columbia, Alberta, and Ontario were the only provinces still showing year-over-year benchmark price declines, while provinces like Newfoundland and Labrador, New Brunswick, and Saskatchewan posted strong gains and even record highs. This divergence reflects differences in local supply, affordability relative to incomes, and population migration patterns between regions.

What's the difference between "average price" and "benchmark price"?

Average price is a simple average of all home sales in a period, which can be skewed upward or downward by a small number of unusually expensive or inexpensive transactions. The MLS® Home Price Index (HPI) benchmark price is designed to track the value of a "typical" home more consistently over time. In May 2026, Canada's average price rose 1.5% year-over-year while the benchmark price was still down 4.1%, illustrating how the two measures can tell different stories in the same month.

When will CREA release the next housing market update?

CREA's statistics packages are released monthly. As of this writing, the May 2026 figures were published on May 14, 2026, with the next package scheduled for mid-June 2026. For the most current figures, check CREA's official statistics page directly, since national and regional data is updated monthly.

Bottom Line

Canada's real estate market is not one market — it's many regional markets moving in different directions at the same time. National headlines about average prices can obscure what's actually happening where you live or where you're considering buying. Before making a decision, look at local months-of-inventory data, recent price trends specific to your city, and your own financial readiness.

To explore opportunities beyond the largest metros, see our guide to real estate opportunities in smaller Canadian cities. To compare the financial trade-offs of renting versus buying given current market conditions, see our renting vs. buying guide.