2026 Housing Market Forecast, and Survey Finds Most Canadians Don’t Regret Buying a Home

This week’s top real estate stories.

By  Jared Lindzon | 2 minute read

Every Friday, Wahi brings you the most important real estate stories from the past week.

A 2022 Housing Market Forecast for 2026

Look out for a DeLorean roaming the streets of Canada because the nation’s housing market is going back to the future. According to a report by the Canada Mortgage and Housing Corporation,  the housing market of two years from now will look a lot like the one we left behind two years ago. The agency forecasts prices will be back to the record-highs set in early 2022 by 2025, surpassing them by 2026, thanks to increasing population, diminishing housing supply, and lower interest rates. This year, meanwhile, they expect prices to only reach 2020 levels, due to ongoing affordability challenges.     

Vacant Home Tax Debacle Infuriates Torontonians  

Toronto’s crackdown on empty homes appears to be an empty threat. Last year the City started charging owners of unoccupied properties a tax equivalent to 1% of its value to help boost housing inventory. This year, however, it seems many missed the window to declare their home occupied and now face a penalty. How many people? Well, the city received over 62,000 complaints as of last Friday, and Mayor Olivia Chow has since vowed to waive late fees for those who missed the deadline to declare. Now pundits are calling the policy a “train wreck” and advocating for its abolishment.

Waiting on the Rate to Change

Economists were expecting the Bank of Canada to keep interest rates steady this week, but they didn’t expect them to be such a downer about it. For the sixth straight time the Bank announced no change to the 5% overnight interest rate on Wednesday, but the non-event came with a warning that there won’t be any cuts until the Bank sees a more consistent decline in inflation. In a press conference the Bank’s governor said he’s still worried about high fuel prices and global instability, prompting traders to drop the odds of a June rate cut from 84% to 40%.

Canada’s Aggressive Housing Policy Still Too Weak  

Despite the time, energy and billions of dollars that’s gone into housing development, Canada remains nowhere close to addressing the supply crisis anytime soon. That bummer of an update comes courtesy of RBC economist Robert Hogue, who says the pace of new construction needs to double just to meet future growth. In other words, all signs suggest that the housing crisis is going to get worse before it gets better. The pessimistic update, however, was accompanied by some potential solutions. Hogue offers seven ways to address supply challenges, including addressing labour shortages, adopting new building techniques, and cutting red tape.

Survey Finds Little Buyer’s Remorse Among Canadian Homeowners  

As homeownership gets further out of reach for many,  those who managed to snag a property in recent years are feeling pretty good about their decision. According to a new survey by Wahi, 76% of those who have purchased since 2019 say they are happy with their decision, 22% have some regrets and just 2% have major buyer’s remorse. The survey found the least disappointment in one of the country’s most expensive markets, Ontario, where just 17% have any regrets. However, 30% of buyers in the country’s most expensive market, B.C., aren’t so confident with their purchase.   

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