Canada’s housing market continues to tilt in favour of buyers, according to a recent report from one of the country’s big banks. But the report also suggests buyers are still being cautious.

The report focuses, mainly, on Canada’s largest markets.  It notes that demand is down sharply in Vancouver and the Fraser Valley while Toronto and Montreal also continue to soften.  Across the prairies, Edmonton, Winnipeg and Saskatoon are posting particularly weak results but Calgary and Regina are among the few outliers showing an increase in buying activity.

Toronto recorded a, seasonally adjusted, 10% drop in prices between December and January.  Based on the Canadian Real Estate Association’s Home Price Index (HPI) prices declined 8.0% compared to a year ago.

In Vancouver seasonally adjusted sales crashed by 30% from December to January, cancelling-out three months of gains.  The HPI shows a 5.7%, year-over-year price decline in January.

In Calgary a 7.3% jump in sales between December and January was not enough to overtake new listings and draw down inventories.  Prices are down 4.7% from January of 2025.

The report notes that severe winter weather may have had an influence on buyer activity.  It also points out that market patterns may have been influenced by an anomaly in the calendar.

“January 2026 contained more working days compared to a year ago, while December’s working day count aligned unusually with January’s—a rare occurrence that likely exaggerated trends.”