Bill's 2026 Market Update

With the US Tariffs on almost all countries in the World since 2025 and now extending to 2026 especially since Canada's recent trade re-alignment with China and the Greenland issue with European Union and NATO, 2026 will certainly be a year of huge uncertainty. Since tariffs affect imports/exports which affects employment , Canadians will certainly be more cautious when it comes to housing.

There is, perhaps, a silver lining since the soon-to-be Trump-appointed Fed Chief will almost certainly reduce rates in 2026 which will further make housing more affordable since prices have already come down significantly over the last 3 years!

I foresee a slightly more robust market with increased sales volume and price stabilization in 2026 especially by Gen Z who are entering the market ( first time or trade-up buyers ) at the beginning of the housing cycle and by empty-nester Baby Boomers who are exiting ( trade-down buyers/ sellers ) at the tail-end of the housing cycle.

Condo market will likely face challenges with "undigested" inventories and more soon to be completed units coming on the market. The counterpoint to this is that there have been and are hardly any new projects on the pipeline currently. By about 2028, most of the existing inventories would likely be absorbed and with inflation, the market will likely be confronted with upward price pressure since supply with its intrinsic latency will likely not be able to keep pace with demand. Keeping in mind, we are currently still short in housing supply, demand is curtailed mainly because of high interest rates and economic uncertainty.

Overall, I predict 2026 will likely be a better year in terms of sales volume and price when compared to 2025! I do anticipate a robust Spring Market since I am experiencing slight improvement in the market since late Fall till now.