The real estate market in 2026 is shaping up to be unique — and if you’re planning to buy, sell, or even both this year, understanding the trends now can give you a real advantage. Here’s what’s happening in Guelph, Ontario, and across Canada, and what it means for you.
Stable Interest Rates Set the Stage
The Bank of Canada has held the overnight lending rate at 2.25%, and I don’t expect that to change anytime soon. For buyers, this is good news: borrowing costs are predictable, which makes planning your purchase much easier. For sellers, stable rates help maintain demand because buyers aren’t suddenly facing higher financing costs.
Home Prices: Flat, But Steady
Expect home prices to remain relatively flat in 2026. There will be minor ups and downs throughout the year, but nothing dramatic. This is good news for both buyers and sellers — buyers aren’t chasing a market that’s moving too fast, and sellers can list with confidence knowing their property isn’t likely to lose value suddenly.
More Sales Are Coming
While prices may stay flat, the number of sales is expected to pick up in the second half of the year. That means more activity, more motivated buyers, and more opportunities for sellers to find the right buyer without drastic price cuts.
Condos: Size Matters
Not all condos are created equal in 2026. Small condos may continue to struggle, but 2-3 bedroom units are holding strong. Why? Because we are in the midst of the largest wealth transfer in Canadian history. Boomers — who own a significant portion of Canada’s wealth — are starting to sell their large family homes and move into larger condos.
These buyers are looking for space and comfort, which puts larger condos in high demand. Sellers of these units are in a strong position, especially if their property meets what buyers want.
Why 2026 Could Be a Good Time for Sellers
If you’re thinking about selling, here’s why 2026 could work in your favor:
Strong Buyer Pool: Boomers downsizing and families upgrading create high-quality demand.
Low Interest Rates: Buyers can afford more without the worry of rising rates.
Limited Supply: Fewer homes were built in 2025, so inventory remains tight.
Predictable Market: Flat prices mean sellers can plan and list with confidence.
Condos in Demand: Larger 2-3 bedroom condos are particularly attractive right now.
Whether you’re selling a family home, a larger condo, or both, timing your sale with these trends can give you a real advantage.
Opportunities for Buyers
Buyers aren’t left out. Stable rates, flat prices, and an increase in sales activity later in the year make it a good environment for purchasing.
Larger condos are smart investments because they’re in demand.
Families looking for more space can take advantage of predictable pricing and steady inventory.
For those moving up or downsizing, the combination of sellers entering the market and stable rates creates opportunities for smooth transactions.
The Bottom Line
2026 is shaping up to be a steady, strategic market:
Stable interest rates at 2.25%
Flat home prices with minor fluctuations
More sales in the second half of the year
Larger condos in high demand
Boomers starting to sell their family homes
Limited new construction leading into 2027
Whether you’re buying, selling, or doing both, understanding these trends can help you make smarter decisions and get ahead of the market.
Want to know more about how these trends could affect your home or investment?