Canada's housing market shows signs of recovery with improving home resales, stabilizing inventory, and slower price declines. However, sales and prices are expected to fall in 2026 before modest gains in 2027. Pent-up demand from delayed buyers and improved affordability in some markets may support growth. Interest rates are unlikely to drop further, and economic improvements could boost confidence. Ontario, B.C., and Alberta are forecasted to see stronger sales growth next year, while condo markets may recover more slowly.