The Canadian Real Estate Association (CREA) reported a notable decline of 16.2% in home sales for January compared to the previous year, with a 5.8% decrease observed from December 2025. This drop is largely attributed to a massive winter storm that struck southern Ontario, particularly affecting the Greater Golden Horseshoe and southwestern Ontario regions. CREA's senior economist, Shaun Cathcart, indicated that the drop in sales was likely influenced more by the inclement weather than any significant decline in market demand.

Despite the downturn in sales activities, the number of newly listed properties saw a month-over-month increase of 7.3%, indicating a dynamic market with a growing number of listings. By the end of January, there were 140,680 properties available for sale across Canada's MLS systems, which reflects a 4.5% rise from the previous year, although it remains 11.4% below the long-term average for the season. This discrepancy hints at a potential mismatch between supply and buyer activity, likely worsened by adverse weather conditions.

The average national sale price for homes in January was reported at $652,941, marking a 2.6% decline from the same month last year. This change in price may reflect the ongoing adjustments in the housing market following the pandemic and fluctuating economic conditions, compounded by recent weather events that have hindered sales and potentially slowed market momentum for the winter months.