Royal LePage Access Real Estate Blog

2026 Real Estate Outlook: What Buyers and Sellers Should Know

As we look ahead to 2026, many are wondering what the year holds for the real estate market. Based on recent insights from economists, mortgage professionals, and industry leaders, the landscape appears to be shifting toward a new period of stability and opportunity.

Here is a breakdown of what we expect in the coming year.

The consensus among economists is that interest rates may have hit their "bottom." With our current economic situation remaining static, the monetary policy has no compelling reason to drop rates further. Unless there are dramatic changes in the economy, the Bank of Canada rate is predicted to remain the same.

We recently chatted with mortgage broker Bobbi-Lee Sebastian, who shared her perspective on the lending landscape: "I feel that rates in general are going to stabilize in 2026... the current rates will remain to be the 'normal' rates going forward." *See 2026 rate announcement schedule below*

While we may not see any drops, we also aren't expecting lending rates to grow, offering a sense of predictability for borrowers.

REALTORS® within our office and across other brokerages are reporting a stir in the market. While interest rates remain steady, home prices have lowered, creating a unique environment for buyers.

In a recent presentation, Phil Soper, President and CEO of Royal LePage®, highlighted this opportunity: "First-time homebuyers and those searching in the Country's most expensive regions have a rare window to act on their homeownership plans at reduced prices."

But what exactly makes this window "rare"?

To understand the urgency, we have to look at the fundamentals of supply and demand. As more first-time homebuyers enter the market to take advantage of current conditions, the demand for properties increases. However, because these buyers are new to the market, they do not contribute to the supply of homes (they aren't selling a home to buy another).

This dynamic creates a potential inventory crunch. With reduced inventory and rising demand, we could see:

• Multiple offers

• Higher competition

• Increased prices

As Soper noted, this improved affordability will "rebuild market confidence in both buyers and sellers, setting the stage for more sustainable, albeit modest, price growth in 2026."

While we don't expect lending rates to drop anymore, we also don't expect current home prices to remain at these levels throughout the year. The early signs of activity that REALTORS® are already seeing, suggest that 2026 will be a busier year compared to the recent past. As market confidence builds, and more buyers emerge, we are feeling optimistic about 2026 and are excited to see what it has in store!

Have questions about the market, or ready to make the move? Email us below or give our office a call for a no-obligation conversation with one of our REALTORS®. 

2026 Bank of Canada Rate Announcement Schedule: 

Wednesday, January 28

Wednesday, March 18

Wednesday, April 29

Wednesday, June 10

Wednesday, July 15

Wednesday, September 2

Wednesday, October 28

Wednesday, December 9