The Canadian real estate landscape has undergone a seismic shift, transitioning from a
historically “hot market” to one that has significantly cooled. After a challenging 2025, where residential home sales in many major hubs plummeted to a 25-year low, experts are pointing toward 2026 as potentially the best time in recent history for buyers to enter the market.
A Market in Transition
The frenzy of previous years has been replaced by a “waiting game” between buyers and sellers. In cities like Toronto and Vancouver, mounting inventory—including thousands of empty homes and condos—has provided a level of choice that was previously non-existent. It is now common to see listings remaining on the market for six to nine months, forcing a difficult reality for sellers who must adjust their price expectations downward rather than upward.
The First-Time Buyer’s Advantage
For those looking to purchase their first home, 2026 offers a unique window of opportunity. Historically, first-time buyers and buyers looking to occupy their properties in most areas of Canada have had to compete heavily with investors for similar properties. However, recent trends show that many investors have exited the market, leaving first-time buyers with very low competition and an abundance of choices.
The Challenges for Sellers and Developers
While buyers are finding their footing, the industry is facing a “tough year. Typical home prices have fallen by approximately 4.5% to 5.3% across various property types. The downturn has been particularly severe for the real estate industry in the pre-sale sector, which have seen cancelled projects, postponed developments, and foreclosures. Many projects have been unable to sell enough units to secure necessary construction financing.
For those who must sell in this environment, the strategy has changed. Realistic, “sharp” pricing is essential and strong marketing campaigns to avoid the “loop of chasing the market down,” where a seller is forced to continually reduce prices to keep up with a declining market. Flexibility regarding closing dates and buyer accommodations is also a key differentiator in a slow market.
Economic Headwinds and Future Confidence.
The downturn was exacerbated in early 2025 by escalating trade tensions between the US and Canada, which led to widespread concerns regarding job security. As many 5 year mortgages are coming due in 2026 we feel that due to the increase in intertest rates and the decrease of values since 2021 there will be a higher than normal amount of power of sale properties hitting the market which will also create downward pressure on the market.
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In a market defined by an “avalanche of inventory” with a historic amount of power of sale properties expected, and listings that often sit for six to nine months and sometimes even more, many sellers are finding it difficult to secure a sale with residential activity having plunged to a 25-year low. In a market where thousands of units sit empty, and builders are struggling to move existing stock, North American Auctioneers provides the certainty that the traditional market currently lacks. Our platform is designed to bypass the lengthy waiting time that has become the new normal. By offering a clear, transparent bidding environment, and a definite sale and closing date, we help you secure a result without being forced into the “waiting game” that has kept buyer confidence low and inventory at record highs.
Contact us now at www.northamericanauctioneers.com.
AUTHOR’S NOTE:
Michael Marienwald is founder and president of North American Auctioneers, Broker of record for Anchor Realty and president of Mountain Realty. He is one of 4 Accredited Auctioneers of Real Estate in Canada, and a Certified Real Estate Auctioneer. Michael has been selling Real Estate conventionally and through auction throughout Canada since 1989 and has also taught Real Estate auctioning at the Ontario School of Auctioneering.
