In May 2026, the national RPS House Price Index, which is based on the latest monthly actual home values in 1,000 towns and cities across the country, once again declined by 4% on a year-over-year basis. This is on par with April’s reading, which represented the largest year-over-year drop in any month since July of 2023.
The national headline figure is freighted by an increasing number of major metro areas demonstrating annual price declines. In May, year-over-year prices once again dropped in seven out of the 13 markets RPS analyzed in addition to the national index. With homebuying activity remaining below year-ago levels as of May and the summer slowdown approaching, the normally more energetic spring market did not yield a substantial rebound this year.
Balance: a defining characteristic of Canada’s housing market so far this year
Whereas in late 2025 and early 2026 the Canadian housing market was characterized by two prevailing and divergent trends — namely, stronger gains in more affordable markets and price corrections in B.C.’s Lower Mainland and Ontario — a third dynamic has arisen more recently. Balance is blanketing previously energetic urban centres in the Prairies and Maritimes.
Minor price movement in Calgary (-1%) and Edmonton (+1) is indicative of a return to conditions more in line with historical performances. Though prices were down more sharply in Halifax (-5%) and Ottawa (-4%) here, too, market momentum is more aligned with long-run norms. Certainly a reduction in international students and related investment activity has helped reduce the temperature on the east coast.
Flat prices in Regina are also suggestive of more balance, although this secondary city is still coming off of a near-record year for sales and remains firmly planted in seller’s market territory as of May. From a risk perspective, any loosening in the Regina market can be interpreted as a positive development. Saskatchewan currently has the highest mortgage-delinquency rate in the country, although significantly lower home prices and mortgage balances do limit exposure.
Vancouver correction less pronounced than Toronto
Protracted price corrections in B.C. and Ontario are responsible for much of the downward pressure on the national index. Vancouver (-5%) and Victoria (-7%) have held up somewhat better than Toronto (-9%) and Hamilton (-9%).
An abundance of unsold condos in the Greater Toronto Area has weighed on multi-family values in the region. This glut of unsold supply has been continuously topped up by completions of projects that broke ground during the previous boom. However, this trend is finally slowing down and should provide the GTA’s high-rise segment an opportunity to stabilize.
Greater Vancouver has been less sensitive to the mass exodus of real estate investment activity. Condo buyer demographics in Vancouver, which anecdotally have skewed more to end-users, have cushioned the market from a more severe correction and kept inventory levels more in check.
Even so, both markets are contributing to the larger year-over-year price declines in the multi-family segment nationally. Row/townhouses (-9%) and condo apartments (-7%) are depreciating at a faster clip than semi-detached (-5%) and detached (-4%) homes.
Quebec continues to flex
Midway through 2024, Quebec’s largest markets began recording significant year-over-year price increases. Since then, they have yet to abate. International migration, particularly to Montreal, contributed to some of the earlier frothiness. With reduced immigration targets, this has been less of a factor, but supply has yet to catch up, supporting annual price gains in Montreal (+7%), albeit short of those attained in 2025.
Stronger fundamentals in Quebec City (+11%), where the labour market is robust and housing is more affordable than in many other cities, continue to bolster values. Stronger fundamentals in Quebec City (+11%), where the labour market is robust and housing is more affordable than in many other cities, continue to bolster values.
About the RPS House Price Index (HPI)
The RPS House Price Index is the most comprehensive source for house price data in Canada and includes the median house price dollar values and extensive additional data by property type from a national to the local level. For more information, the complete methodology is available.
Long-Term Price Trends
The RPS House Price Index is based on the latest monthly actual home values in 1,000 towns and cities across the country.
The index shows how property values have changed over time, relative to a base period (Jan. 2005 = 100). An HPI value of 300 means property values have tripled (on a smoothed, adjusted basis) since 2005.
The HPI does not indicate the actual price of a property. It demonstrates how prices have moved relative to the base period.
Market Momentum
A rising index indicates an upward price trend. A falling index suggests price softening or correction. Since the HPI smooths noise and filters out outliers, it gives a more stable, reliable picture of pricing trends than monthly medians.
The HPI is based on an up-to-six-month rolling average, so it does not reflect short-term volatility, such as one-off surges in prices from luxury sales. All figures are rounded to the nearest whole number.
Access the RPS House Price Index Data
This article provides a summary of the key trends from the May 2026 RPS House Price Index. If you’d like the underlying data, sign up for the RPS HPI Public Release and receive the complimentary dataset each month, delivered directly to your inbox.
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Josh is a staff writer at RPS. He has been reporting on the national real estate market for 10 years, including for some of Canada’s largest newspapers and magazines.