Canada's affordability reading reached ~41% in Q2 2026 after an 11th straight quarterly improvement, helped by lower prices, lower borrowing costs, and rising incomes.
Even after ~13 ppts of improvement from the recent peak, ownership stayed difficult nationally, with housing costs still taking roughly two-fifths of avg. household income.
The measure may look somewhat better than many households feel because it uses avg. disposable income, not median income, which can overstate affordability.
A bank economist said the recent reset reflected earlier rate cuts, a ~20% national price decline from the 2022 peak, and stronger personal incomes.
Looking ahead, slow income gains and limited rate relief leave more of the adjustment to prices, making further national declines still possible.

The national housing agency projected Canada needs 417K-469K new homes yearly through 2036 to restore pre-pandemic affordability, far above current construction expectations.
Canada still faces a long-term housing supply gap of 187K-238K homes per year over the next decade, based on current projections nationally.
Construction expected to slow faster than demand, leaving Canada short of needed homes and making the current downturn a key risk to affordability goals.
The scale of the shortage means construction would need to rise dramatically from current projections, with much of today's building tied to projects already underway.
Nationally, Canada needs roughly twice as much housing construction as currently projected to improve affordability over the next decade under the current outlook.

Canada’s trade dispute with the US was adding pressure across housing and mortgages, from borrowing costs and construction expenses to weaker near-term demand.
An economist estimated ~50% tariffs on selected exports could cost Canada ~90K jobs, with Ontario and Quebec expected to feel the biggest effects.
A bank projected tariffs could trim Canada’s GDP by <0.5% and lift inflation similarly, a mix seen keeping the central bank sidelined.
Rising bond yields pushed fixed mortgage rates higher recently, while more borrowers turned to shorter-term and variable options as lenders watched vulnerable sectors.
Counter-tariffs on steel and aluminum were expected to raise building and renovation costs, slow new construction, and make mortgage advice more valuable for homeowners.

Across BC, standing inventory totaled 6.7K homes, including 5.5K condos, and the count covered condos, townhomes, plus some multiplex units provincewide.
Among tracked BC cities, Burnaby led with 1.21K unsold homes, followed by Vancouver at 1.02K, Surrey at 798, and Coquitlam at 620.
Richmond recorded 396 units, Kelowna 372, Langley Township 276, New Westminster 224, and Delta 211, showing inventory spread well beyond BC's largest markets.
Additional BC counts included Langford 188, Esquimalt 173, the City of North Vancouver 135, Abbotsford 118, and Chilliwack 100; listed cities totaled 5.84K.
A common presale narrative blamed mainly studios and one-beds, but broader BC size and avg. price data pointed to a different story.

A national industry association lowered its 2026 sales outlook, signaling slower activity across Canada even as market conditions continue to differ widely by region.
Falling home values and a wave of listings gave buyers more leverage, lighter competition, and extra time to weigh mortgage and purchase decisions.
An industry expert said recent sales activity has not produced meaningful value gains, leaving improved buying opportunities for people previously priced out.
The central bank held rates steady so far in 2026, giving no sign of cuts before year-end and continuing to temper affordability and demand.
The base case still called for 2027 sales to rebound ~4%, with avg. prices reaching ~$694K if rates stabilize and economic growth firms.

Canadian homebuyers are making more informed and deliberate decisions, with economic conditions encouraging careful planning rather than rushed purchases.
A more balanced market is giving buyers and sellers additional time to evaluate opportunities and make confident real estate decisions.
Improved financing awareness and stronger due diligence are helping consumers navigate transactions more strategically in today's market.
Real estate professionals remain cautiously optimistic, while increased adoption of AI and technology is helping modernize and streamline the industry.

Canada’s housing market has been edging toward recovery since Early-Q2, with resales improving, inventory leveling off, and prices either stabilizing or easing more slowly.
The bank expected 2026 home resales to ↓~4% to 453.2K and benchmark prices to ↓~2% to $794.2K, despite the improving recent trend.
For 2027, the bank forecast resales ↑~7% to 483.6K and benchmark values ↑400K Canadian households may not have formed since 2019 as many postponed buying decisions.
The outlook depends on affordability, steady growth, and stronger confidence, but the bank said rates likely bottomed and trade tensions could still disrupt progress.

National Day for Truth and Reconciliation honours survivors and raises awareness about their experiences.
It's a symbol of Canada's commitment to reconciliation with Indigenous communities.
Wearing orange shirts on this day symbolizes respect for survivors and raises awareness about residential schools.
May this day inspire a future where every voice is heard, and every spirit is healed.
Together, we can create a tomorrow filled with hope and endless possibilities.

CMHC expects housing conditions to improve gradually in 2027 as incomes and economic growth strengthen.
Sales should recover, but CMHC expects activity to remain below the typical levels seen during the previous decade.
CREA forecasts only modest national price growth, suggesting stabilization rather than another major price surge.
Higher inventory and weaker demand in some markets could continue giving buyers more negotiating room.