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Canada's Housing Market Faces 20% Price Plunge

1/2/2026

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Story summary
  • Canada’s residential real estate market faced its worst year since the pandemic, with prices down about 20%.
  • Financing costs have risen and construction struggles persist, especially in the Greater Toronto Area with 22-month sales declines.
  • Housing starts are declining despite government measures such as zoning changes and financing support.
  • Experts foresee a worsening outlook with a looming supply crunch and no recovery in 2026.