Lower prices for 2026
Weak activity in Q1
TD Economics has severely lowered its 2026 forecast for home sales and prices, saying it no longer expects either to rise this year, after weak performances over the past two quarters.
It now expects sales to fall 1.8% year-over-year, on average, and home prices to move 0.3% lower nationally.
Economist Rishi Sondhi said housing activity will likely take most of the year to recoup first-quarter losses, as sales remain constrained by a subdued economy, heightened uncertainty and ongoing cost of living pressures.
Prices are expected to fall four per cent in Ontario, compared with December’s forecast of a 0.6% gain, and decline 1.2% in B.C., compared with the previously expected 3.6% rise.
He cautions there are risks to the outlook, such as a broader or more prolonged escalation of Middle East tensions which could “support activity in oil producing regions but weigh more heavily on oil importers.” That could potentially unleash pent up demand in Ontario and B.C. “faster or more forcefully than expected,” said Sondhi.
Full Read:
- canadianmortgagetrends.com/
- https://www.canadianmortgagetrends.com/2026/03/td-cuts-forecast-for-home-sales-prices-for-2026-after-weak-activity-in-q1/
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