After two years of hesitation, many Canadians are asking the same question: will 2026 finally be the year buyers move forward again? National forecasts suggest the housing market is no longer in retreat, but the recovery looks measured, uneven, and highly local. For markets like Kamloops, British Columbia, that nuance matters more than national headlines.
Rather than a dramatic rebound, 2026 is shaping up as a year of stabilization and recalibration, one where real estate decisions are driven less by speculation and more by life changes, affordability, and local market conditions.
Canada’s Housing Market Heading Into 2026: The Big Picture
According to updated projections from the Canadian Real Estate Association (CREA), national home sales are expected to rise into the low $500,000 range in 2026, representing mid-to-high single-digit growth compared to 2025. Average home prices are forecast to trend back toward the high $600,000 to $700,000 range, reflecting modest appreciation rather than rapid growth.
The key takeaway? Activity is improving, but the market is not returning to pandemic-era intensity.
Across the country, forecasters broadly agree that:
Transaction volumes should increase
Interest rates are stabilizing
Price growth will vary significantly by region
Where opinions differ is how quickly confidence returns — and which markets benefit first.
Why 2025 Fell Short and Why That Matters for 2026
Early projections once positioned 2025 as a strong rebound year. That optimism faded as affordability pressures, economic uncertainty, and global trade concerns caused many buyers to pause again.
In British Columbia, including interior markets like Kamloops, activity slowed but it did not collapse. By mid 2025, sales data showed gradual improvement, suggesting demand was postponed, not lost.
As a result, much of what was expected in 2025 has effectively been pushed into 2026.
Sales Activity in 2026: A Steady Thaw, Not a Surge
Nationally, 2026 is expected to bring incremental gains in home sales, not a rush of pent-up demand all at once. Buyers who spent years waiting for significant rate cuts or price drops are slowly adjusting to today’s realities.
In Kamloops and surrounding BC Interior communities, this means:
Fewer bidding wars compared to recent peaks
More balanced conditions between buyers and sellers
Activity driven by relocations, upsizing, downsizing, and lifestyle changes
Rather than trying to “time the bottom,” buyers are increasingly acting when their personal situation makes sense.
Home Prices: Why Local Markets Like Kamloops Matter More Than National Averages
Price forecasts for 2026 vary more widely than sales forecasts. Some national outlooks anticipate small gains, while others point to slight declines — largely influenced by high-priced urban centres.
What’s consistent across all forecasts is the continued divergence between regions.
Two Distinct Market Types Are Emerging:
Correction-Oriented Markets
High-priced metro areas
Rising inventory
Flat or downward price pressure
Lifestyle and Affordability Markets
More attainable price points
Strong interprovincial migration
Stable or modest price growth
Kamloops tends to sit closer to the second category. Compared to major coastal markets, Kamloops real estate remains relatively affordable, while still benefiting from lifestyle appeal, employment diversity, and demand from both local and relocating buyers.
Interest Rates in 2026: Stability Over Sudden Relief
Looking ahead, most economists expect interest rates to remain relatively steady rather than falling sharply. For buyers and sellers, this shifts the focus away from waiting for cheaper borrowing and toward planning within a higher-rate normal.
In practical terms:
Mortgage qualification remains important
Affordability improves gradually, not overnight
Income growth and realistic pricing matter more than rate speculation
For Kamloops buyers, this reinforces the importance of local guidance and financing strategy, especially for first-time purchasers.
What 2026 Means for Buyers in Kamloops, BC
For buyers, conditions are improving, but selectively.
What’s working in buyers’ favour:
More listings compared to recent years
Less emotional competition
Increased negotiating opportunities
What hasn’t changed:
Affordability constraints
Lending qualification rules
Strong demand for well-located, well-priced homes
In Kamloops, prepared buyers, those with pre-approvals, flexible criteria, and realistic expectations are best positioned to succeed.
What 2026 Means for Sellers in Kamloops
For sellers, the days of automatic leverage are behind us. Pricing, presentation, and timing matter again.
Homes that are:
Priced correctly for today’s market
Well maintained
Marketed professionally
…are still selling efficiently in Kamloops. Overpriced listings, however, are more likely to sit and require adjustments.
While some homeowners remain “rate locked,” life decisions, retirement, family changes, and relocations continue to bring listings to market.
Renters and the Rent vs. Buy Question in 2026
For renters in Kamloops, 2026 is less about urgency and more about preparation. Renting may still offer short-term flexibility, but ownership continues to appeal for long-term stability.
For those planning to buy in the next few years, this is an ideal time to:
Improve credit
Build savings
Understand neighbourhood-level pricing trends
Monitor inventory patterns
Final Thoughts: A More Sustainable Kamloops Housing Market
The 2026 housing market in Canada, and particularly in Kamloops, BC, is not defined by extremes. Instead, it reflects a return to rhythm and realism.
Sales activity is rising gradually
Prices are stabilizing with local variation
Interest rates are no longer the sole driver of decisions
Success in 2026 won’t come from predicting headlines, it will come from local insight, clear expectations, and smart planning.
If you’re thinking about buying or selling in Kamloops this year, understanding how national trends translate locally can make all the difference.
Click here to get in touch and find out how to make the best move for you in 2026.
Sources:
1. Canadian Real Estate Association (CREA).
CREA Updates Resale Housing Market Forecasts for 2025 and 2026.
https://www.crea.ca/media-hub/news/crea-downgrades-resale-housing-market-forecast-amid-tariff-uncertainty-and-economic-uncertainty/
2. CREA.
Quarterly Canadian Housing Market Forecasts.
https://www.crea.ca/housing-market-stats/canadian-housing-market-stats/quarterly-forecasts/
3. Yahoo Finance Canada.
Home prices expected to tick higher in 2026 as sales rebound.
https://ca.finance.yahoo.com/news/home-prices-expected-tick-higher-090007704.html
4. Mortgage Professional Canada (MPA).
CREA trims 2025 home sales forecast as buyers delay return.
https://www.mpamag.com/ca/mortgage-industry/market-updates/crea-trims-2025-home-sales-forecast-as-buyers-delay-return/553264
5. CREA.
Canadian home sales edge up again following third interest rate cut.
https://www.crea.ca/media-hub/news/canadian-home-sales-edge-up-again-following-third-interest-rate-cut/
6. CBC News.
Canadian home sales rise as buyers slowly return.
https://www.cbc.ca/news/business/crea-home-sales-october-9.6981575
7. Royal LePage.
Canada’s housing market poised for a reset in 2026.
https://www.royallepage.ca/en/realestate/news/canadas-housing-market-poised-for-a-reset-in-2026-with-modest-price-growth-and-increased-activity/
8. Royal LePage Blog.
A reset is in store for Canada’s housing market in 2026.
https://blog.royallepage.ca/a-reset-is-in-store-for-canadas-housing-market-in-2026/
9. RE/MAX Canada.
Canadian Housing Market Outlook.
https://blog.remax.ca/canadian-housing-market-outlook/
10. Real Estate Magazine.
CREA downgrades housing market forecast.
https://realestatemagazine.ca/crea-downgrades-housing-market-forecast/
11. Real Estate Magazine.
Five years of market swings set the stage for 2026.
https://realestatemagazine.ca/opinion-5-years-of-market-swings-set-the-stage-for-2026/
12. Reuters.
Bank of Canada seen holding rates as housing stabilizes.
https://www.reuters.com/world/americas/bank-canada-done-cutting-rates-least-until-2027-house-prices-rebound-soon-2025-12-05/
13. Bank of Canada.
Monetary Policy Reports & Rate Announcements.
https://www.bankofcanada.ca/core-functions/monetary-policy/
14. Mortgage Professional Canada (MPA).
Buyers could edge back to Canada’s housing market in 2026, says Royal LePage.
https://www.mpamag.com/ca/mortgage-industry/industry-trends/buyers-could-edge-back-to-canadas-housing-market-in-2026-says-real-estate-giant/559474
15. Real Estate Magazine.
Real estate trends for 2026: Why Canada’s future may be brighter than it looks.
https://realestatemagazine.ca/real-estate-trends-for-2026-why-canadas-future-may-be-brighter-than-it-looks/
