91¶¶Òù

From 2021 to 2026, the Canadian House Price Index exhibited pronounced volatility amid global and domestic market shocks. In 2021, the index stood at 175.3, reflecting substantial price growth that began during the pandemic. Low interest rates, generous federal stimulus and a surge in demand driven by urban exodus and remote work led Canadian home prices to reach historic highs. Bidding wars, limited supply and a pace of appreciation unrivaled since the recovery period following the global financial crisis drove values upward.

By 2022, the index peaked at 179.2. This high watermark signaled the final phase of a multi-year price boom strengthened by demographic demand, investor purchases and home renovations. However, an aggressive series of Bank of Canada interest rate hikes, paired with declining affordability and regulatory tightening, reversed the price's trajectory. In 2023, the index dropped 10.1%—the largest single-year correction since 1981—followed by a further contraction of 4.3% in 2024 and 4.7% in 2025.

In total, the index declined by 17.4% (or 30.5 points) between 2021 and 2026, with a compound annual decline rate of -3.8%. The corrected path from the 2022 high to the 2026 projected trough—down 19.1%—has restored a measure of affordability and reduced speculative fervor. Regional divergence remains stark, with Alberta and Atlantic Canada exhibiting sustained demand, while Ontario and British Columbia experienced longer, deeper corrections. This market cycle underscores Canada's housing market sensitivity to macroeconomic shifts, rapid changes in borrower costs and evolving policy responses.