Winter weather froze more than just the roads this past January. According to the latest data from the Canadian Real Estate Association (CREA), the national housing market started 2026 on ice, with sales taking a significant dip while new listings surged.

Snowstorms Stall Activity

National home sales fell 5.8% between December 2025 and January 2026. If you look at the numbers compared to the same time last year, activity is down 16.2%. However, this doesn’t necessarily signal a lack of interest from buyers. The data suggests that severe winter weather in Central Canada played a massive role in keeping people indoors and away from open houses.

Shaun Cathcart, CREA’s Senior Economist, explains that the decline concentrated mainly in Ontario’s Greater Golden Horseshoe and Southwestern regions.

“The monthly decline in national home sales was driven primarily by less activity in the Greater Golden Horseshoe and Southwestern Ontario, suggesting that the story was probably more about a historic winter storm than a downshift in demand,” Cathcart stated. “Notwithstanding the chilly start to the year, we continue to expect 2026 will ultimately be defined by pent-up demand from first-time buyers finally seeing a chance to enter the market.”

Sellers Are Ready to Move

While sales slowed down, sellers ramped up their efforts. The number of newly listed properties jumped 7.3% month-over-month. This indicates that homeowners are eager to enter the market, even if buyers were temporarily snowed in.

“We always say all real estate is local, and on occasion, including this January, that can mean the impact of local weather on the market,” said Valérie Paquin, CREA Chair. “In a repeat of 2025, new listings are showing up early to start the year, so sellers are eager to getting going, but we may have to wait a bit longer to see how buyers react.”

Price Trends and Inventory

With more homes hitting the market and fewer sales taking place, the national sales-to-new listings ratio dropped to 45%. This shift has helped replenish inventory, which now sits at 4.9 months on a national basis—very close to the long-term average of five months. This balance is good news for buyers who have dealt with tight inventory for years.

Regarding cost, the actual national average sale price settled at $652,941 in January 2026, a 2.6% dip compared to January 2025. The MLS® Home Price Index (HPI) also fell by 0.9% from the previous month.

Frequently Asked Questions

Why did home sales drop so much in January?

The primary driver for the 5.8% drop in national sales was severe winter weather, particularly in Ontario. Historic snowstorms kept buyers at home, rather than a sudden loss of interest in purchasing property.

Are home prices falling?

Yes, slightly. The national average home price dipped 2.6% year-over-year to $652,941. The MLS® Home Price Index also saw a 0.9% decrease from December to January.

Is now a good time to buy?

Market conditions are becoming more balanced. With inventory rising to 4.9 months and prices softening, buyers currently have more selection and slightly more negotiating power than in previous years.