Toronto, Feb. 28 -- Canada's housing market opened 2026 on a sobering note, with home sales and prices declining even as the Bank of Canada maintained its benchmark interest rate, underscoring persistent weakness across the real estate sector.

National home sales dropped sharply in January, falling 5.8% month-over-month and 16.2% from a year earlier, according to the Canadian Real Estate Association (CREA).

The association reported that new listings rose while demand lagged, pushing the national sales-to-new listings ratio to 45%, a sign of a cooling market.

The CREA data showed that the MLS(R) Home Price Index (HPI) fell 0.9% compared with December 2025 and was down 4.9% year-over-year, while the national average sale price dipped by ...