Canada’s housing landscape is undergoing a significant reset as trade tensions and changing immigration patterns reshape buyer behaviour heading into 2026. Despite improved interest rates and stronger employment conditions, concerns about tariffs have emerged as the primary factor dampening housing activity, potentially impacting prices by up to four percent. The condominium sector faces particular pressure as reduced immigration – including fewer temporary workers and international students – has weakened investor demand in major urban centers. While national home prices are forecast to edge up modestly by 1 percent, major markets like Toronto and Vancouver are expected to remain soft, with prices declining by 3.5-4.5 percent as the country navigates economic uncertainty.