Private home prices projected to rise 3% in 2026

Lower interest rates cuts mortgage costs and supports buyer demand.

Prices in the housing market are projected to rise steadily in the coming year after a resilient 2025, according to a report by PropNex.

Private home prices will continue to go up in 2026 by 3%, with sales remaining steady as well.

Prospective homeowners are expected to buy 8,000-9,000 units in 2026 whilst the resale market may record between 14,000 and 15,000 in deals.

Interest rates will continue to drive this steady stream of buyers, with the compounded SORA benchmark at 1.22% in December compared to 3.02% in early 2025, leading to lower mortgage costs.

Regarding regional trends, the report showed that the largest new supply of homes will be Outside Central Region (OCR) properties, with 65% of new homes in 2026 projected to be in these suburban areas.

In the Rest of Central Region (RCR), steady growth is expected at 1-3%.

In the prime districts of the Core Central Region (CCR), the price gap has narrowed compared to other areas, making these homes potentially more appealing to buyers.

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