Canada’s housing outlook stayed weighed down as US policy shocks, inflation pressure, and Middle East conflict kept buyers cautious and made a stronger rebound hard to see.
Current inflation reached ~2%, while 5-yr Canada bond yields wobbled as war uncertainty and price pressures raised the possibility of rate hikes.
Experts said a stronger market through end-2026 likely needed a lasting resolution to the Iran conflict, but broader unpredictability still clouded Canada’s housing outlook.
An expert said buyers might return if prices fall enough, yet major recovery looked unlikely because unpredictable US decisions kept confidence weak.
A national REALTOR® group cut its 2026 home sales forecast, citing global uncertainty and higher fixed mortgage rates, reinforcing expectations that market weakness would persist.