Dec 8, 2025
Potential homebuyers appear to be regaining confidence after a sluggish 2025, with more first-time buyers preparing to enter the market and signs that activity could pick up into next year.
New data from REMAX Canada’s 2026 Housing Market Outlook shows that one in 10 Canadians plans to buy a home in the next twelve months, an increase from earlier this fall, and half of those would be first-time buyers.
Advertisement
“Amid looming economic clouds, Canadians are maintaining their interest in homeownership,” said Don Kottick, President of REMAX Canada, in a statement. “The resilience that began to emerge in the fall is anticipated to continue into 2026, with first-time buyers in particular finding creative ways to save and enter the market.”
Demand is stabilizing as rates ease
After a year of uneven sales, REMAX brokers report renewed buyer intent across many regions. Home sales fell year-over-year in 19 of 33 markets between January and October, but listings increased in more than 75% of regions — a shift toward more balanced conditions after the tight inventory of 2024.
Lower borrowing costs are a major factor behind the improvement.
According to REMAX’s Leger survey, 23% of Canadians say they’d be ready to buy if the Bank of Canada lowered rates by another 0.5 to one percentage point, underscoring how sensitive the market remains to financing conditions.
Younger buyers, in particular, are feeling more optimistic. Among Canadians aged 18 to 35, 21% believe the economy will fare better in 2026, compared with only 10% of the general population planning to purchase. Many are also adjusting their search criteria to reflect a shift back toward in-office work.
“Return-to-office mandates are beginning to weigh on first-time buyers' decisions, prompting many to reconsider not just where they want to live, but how their daily routines, commute times, and lifestyle needs will fit into an in-person work environment,” Kottick said.
Must Read
- Stop the leak: 5 costs Canadians (still) overpay for every single month. How many are sabotaging your 2026 budget?
- What's your worth? Here are the 3 net worth milestones that change everything for Canadians (and what they say about you)
- Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich — and that ‘anyone’ can do it
Affordability pressures remain — despite improving sentiment
Even as motivation rises, affordability is still the major barrier across most regions.
REMAX notes that price moderation and higher inventory helped rebalance markets in 2025 — particularly in the Greater Toronto Area, where average prices fell 3.5% — but many households still face significant challenges with carrying costs, stress tests and down payment requirements.
Advertisement
Brokers in major markets say that while buyers are returning, many remain cautious and are watching rates closely before making offers.
In several regions, families, new Canadians and retirees drove a larger share of 2025 sales than first-time buyers, reflecting the financial hurdles younger households continue to face.
Construction productivity adds another layer to housing costs
New analysis from the Canada Mortgage and Housing Corporation (CMHC) highlights a broader structural obstacle: the rising cost of building new homes.
CMHC estimates that weak productivity in residential construction has added $6–8 billion to housing costs since the pandemic, accounting for up to 20% of the increase in new home prices.
The agency warns that delays, inefficiencies and inconsistent building processes are slowing the pace of new supply — limiting the impact of lower rates or increased buyer demand.
Aled ab Iorwerth, CMHC’s Deputy Chief Economist, said in a statement that improving efficiency through digital tools, standardized data and more coordinated regulation will be essential. “Productivity is critical, especially in residential construction where Canada’s challenges are most acute,” he noted.
Read more: The ultra-rich are bailing on volatile stocks right now — these 4 shockproof assets are their new safe havens
Key takeaways for home buyers
The real estate picture ahead of 2026 is mixed:
- Buyer motivation is rising, especially among first-time buyers
- Lower interest rates could unlock more activity
- Affordability constraints continue to shape what buyers can take on
- New home supply may remain limited as construction costs rise
For Canadians preparing to enter the market next year, timing and local conditions will matter more than ever. Rates may ease, sentiment is improving — but structural affordability pressures remain a central part of the housing landscape heading into the new year.
You May Also Like
- Here’s how to retire in 10 short years no matter where you live in Canada — even if you’re starting with $0 savings
- If you’re still feeling the pinch this month — don’t panic. Here are 5 easy ways to fix your finances without a total overhaul
- How Warren Buffett’s simple buy-and-hold real estate approach offers a lesson for Canadian homeowners and long-term investors
- Approaching retirement with no savings? Don’t panic, you're not alone. Here are easy ways you can catch up (and fast)
Steven Brennan is a freelance finance writer based in Vancouver, BC. He holds a BA and an MA from Maynooth University, Ireland. His work regularly appears at Canadian Mortgage Trends, Lowest Rates, Loans Canada and other Canadian and US brands, while also working as a ghostwriter for financial influencers.
