Canada Home Prices Could Stabilize in 2027

An economist said Canadian home prices could begin stabilizing in 2027, as mortgage rates neared a peak even while weaker population growth kept demand soft.
He said much of the recent borrowing-cost increase may already be behind Canadians, with longer-term bond yields nearing highs and no aggressive central-bank tightening needed.
Canada’s annual population growth reportedly slowed from ~1.2M to ~200K, limiting new buyer demand even as employment among prime homebuying-age Canadians reached record highs.
The outlook also reflected a national composite price decline of ~4% this year, while firm construction costs may help keep deeper price drops limited.
Looking ahead, stronger business investment, job growth and income gains were presented as the clearest path to restoring confidence and supporting Canada’s housing recovery.