The Daily Canuck: Canada | Financials

Research evidence excerpt

The Daily Canuck: Canada | Financials

Financials

Equity Research

July 16, 2026

Macroeconomic/Global

CREA now expects home sales decline in 2026 as it lowers forecast again (The Canadian Press)

Yesterday, The Canadian Press reported that the Canadian Real Estate Association (CREA) has

downgraded its 2026 housing outlook, now forecasting 463,336 home sales, a 1.4% decline y/y,

reversing earlier expectations for growth. The revision reflects a weak first half marked by delayed

market recovery, higher mortgage rates tied to oil-driven inflation fears, and negative population growth

in some regions. While national home prices are projected to rise 1.1% to $686,710, this is slightly

below earlier estimates. Recent data shows tentative improvement, with June sales up 0.9% y/y and

0.5% m/m, suggesting a gradual recovery may be underway. Consumer demand has been subdued

but could strengthen in the second half as interest rates stabilize, especially among first-time buyers.

Despite these improvements, overall activity remains soft, prices have shown limited gains, and supply-

demand conditions remain loose in key markets like B.C. and Ontario. CREA expects sales to increase

3.7% in 2027, with modest price growth, but emphasizes that housing recovery will depend heavily on

broader economic stability, including labour markets and geopolitical factors.

Canada pauses immigration applications for parent, grandparent sponsorship (The Canadian Press)

Yesterday, The Canadian Press reported that the federal government will not accept new applications

in 2026 for its parent and grandparent sponsorship program as part of efforts to manage processing

capacity and reduce wait times. Officials indicated there are already about 60,500 applications in the