Canada's housing market shows signs of recovery in 2026 with rising home resales, stabilized inventory, and slower price declines. Despite a projected 3.6% drop in resales and 2.3% price decline this year, a modest rebound is expected in 2027. Improved affordability, job prospects, and pent-up demand will support growth, though challenges like immigration cuts, interest rate rises, and regional disparities persist. Recovery will be gradual and uneven across provinces.