The MLS House Price Index showed the composite house price edging up 0.7% in the first three months of 2026. New condominium prices told a different story: Statistics Canada’s New Condominium Apartment Price Index showed prices had fallen 5.9% in Toronto and 2.9% in Vancouver since the first quarter of 2025. The Bank of Canada’s Financial Stability Report noted that condominium market pressures in those two cities had created challenges for owners and investors.
TD Bank economist Maria Solovieva said declining home prices in recent quarters may have drawn buyers off the sidelines, pushing residential real estate values higher. “This quarter, we’re expecting some strength in home prices,” Solovieva told Yahoo Finance. “It’s a reflection, mostly, of some recovery in the housing market after a fairly low slump.”
Financial assets add $148 billion
Household balance sheets gained $148.0 billion in financial assets, driven by net purchases of mutual fund units and higher valuations of domestic equities and investment funds, even as foreign equity holdings eased. The S&P/TSX Composite Index rose 3.3% in the quarter, with gains concentrated in energy and mining stocks, though Statistics Canada noted it was the slowest quarterly growth since Q1 2025.
Households registered the third-largest acquisition of mutual fund shares on record at +$75.3 billion. At the same time, holdings of currency and deposits fell — the first such reduction since Q1 2013 and the sharpest since Q4 2001.
“Household wealth continued to expand in Q1 despite elevated market volatility,” Solovieva said in a note. “Looking ahead, the backdrop for wealth accumulation remains broadly positive, but heightened uncertainty may make households more cautious about spending out of wealth.”
