Home prices may level off in 2027 as mortgage rates approach their peak

Canadian home prices may stabilize in 2027 as mortgage rates near their peak, despite weak population growth and regional economic challenges. Slowing population growth, especially among key home-buying ages, and higher borrowing costs are dampening housing demand. Construction costs remain high due to labor shortages and infrastructure projects. A recovery depends on increased business investment, income growth, and improved confidence, rather than further price declines.