Canada's housing market is recovering modestly in 2026 but remains fragile and uneven across regions. National home resales are projected to decline 3.6% this year, with prices slipping 2.3%. Ontario and British Columbia face extended downturns, while Alberta shows stronger growth. Household formation has been suppressed since 2019 due to high ownership costs. Job market improvements and stable interest rates may boost confidence, but condo markets in major cities continue to struggle.