Homebuyers in Canada are finding unexpected opportunities in several regions where falling prices and declining sales have created favorable conditions. According to a recent report by real estate platform Zoocasa Inc., seven of the 23 largest Canadian cities and regions now exhibit a combination of decreasing home prices and reduced sales volume, signaling a buyer's market.
Niagara Region Leads the Way
The most advantageous market for buyers is the Niagara Region in Ontario, where home prices have dropped 8.1 percent year-over-year, while sales have fallen 6.4 percent. This trend provides ample supply at lower costs for prospective homeowners.
Other Opportunity Spots
Greater Vancouver also presents a buyer-friendly environment, with prices down 3 percent and sales declining 2.9 percent. In the Hamilton-Burlington area, prices have decreased by 6.2 percent, and sales are down 0.7 percent. Additional regions offering advantages include Sudbury, Ontario; Gatineau, Quebec; Regina, Saskatchewan; and the Fraser Valley of British Columbia.
"For buyers who've been waiting for more selection and more negotiating power, these markets are worth watching closely," Zoocasa stated in the report.
National Housing Trends
Across Canada, the Canadian Real Estate Association (CREA) reported that average home prices rose 2.2 percent year-over-year in April to $695,412. Home sales increased 0.7 percent month-over-month in April, with expectations of stronger activity in May.
Despite these gains, economist Rishi Sondhi of Toronto-Dominion Bank noted that the housing market faces headwinds such as weak population growth, elevated supply in key regions, and shaky job markets. "These factors suggest 2026 could be another subdued year for Canadian housing," Sondhi said.
Hot Markets in Quebec
Conversely, some areas are experiencing robust activity, particularly in Quebec. Saguenay, Quebec City, Sherbrooke, and Montreal are among the regions where both housing prices and sales are rising. Thunder Bay, Ontario, and Newfoundland and Labrador also show upward trends.
"Mid-priced cities are posting double-digit price gains, several higher-priced regions are seeing meaningful corrections, and a handful of markets are quietly heating up across both prices and sales," the Zoocasa report added.
Inflation and Economic Context
Canada's inflation rate increased to 2.8 percent in April, driven largely by high energy prices related to geopolitical tensions. The Consumer Price Index reached its highest level since May 2024, though it remained below Bank of Canada expectations. Food prices rose 3.8 percent, while transportation fuel costs increased 7.6 percent. The central bank projects inflation will return to its 2 percent target by early 2027.
