Northern Ontario Housing & Mortgage Monthly

For clients in North Bay, Greater Sudbury, Muskoka, Sault Ste. Marie & Timmins — February 2026

Market Headline

Northern Ontario enters early 2026 with disciplined, fundamentals-driven activity. Interest-rate stability has supported buyer confidence without triggering speculative behaviour. Pricing, inventory, and absorption metrics continue to reflect a balanced market environment, reinforcing the importance of planning, realism, and long-term positioning.

Homeowner Callout: What This Means If You Own a Home

Pricing

• Home values remain broadly stable, with modest variation by sub-market and property type.

Selling

• Well-maintained, properly priced homes continue to sell. Overpricing still results in longer days on market and price adjustments.

Buying / Moving

• Buyer competition is lower than peak years. Conditional offers remain normal and expected, making coordination of a sale and purchase particularly important.

Homeowner takeaway: This is a healthy, normalizing market that supports thoughtful decisions rather than urgency.

What This Means for Real-Estate Investors

Cash Flow

• Rental demand remains strong across Northern Ontario, though rent growth is moderating.

Financing

• Financing remains available, with underwriting emphasizing DSCR discipline, realistic rent assumptions, and conservative leverage.

Opportunities

• Stabilized multifamily assets, realistically priced value-add properties, and long-term holds with predictable income streams.

Investor takeaway: This remains a fundamentals-first environment.

Market Dashboard - Northern Ontario Aggregate

Interpretation: Northern Ontario transitioned toward balance through 2025. Inventory improved, pricing softened modestly on a seasonal basis, and sales velocity moderated without signs of stress.

Market-Specific Sub-Reports

North Bay

• Positioning: Balanced but segmented. Entry-level and well-located homes continue to transact efficiently; higher-priced or condition-sensitive listings face longer marketing times.
• Investor context: Rental demand remains firm, though expense control is increasingly important.
• Guidance: Buyers benefit from improved selection; sellers must price accurately; investors should underwrite conservatively.

Greater Sudbury

• Positioning: One of Northern Ontario’s most liquid markets, now modestly more buyer-friendly due to increased listings.
• Investor context: Rental demand remains firm, though expense control is increasingly important.
• Guidance: Buyers benefit from improved selection; sellers must price accurately; investors should underwrite conservatively.

Timmins

• Positioning: Outperforming seasonal norms, supported by employment stability and limited supply.
• Investor context: Rental demand remains firm, though expense control is increasingly important.
• Guidance: Buyers benefit from improved selection; sellers must price accurately; investors should underwrite conservatively.

Sault Ste. Marie

• Positioning: Value-oriented market with steady end-user demand and selective investor activity.
• Investor context: Rental demand remains firm, though expense control is increasingly important.
• Guidance: Buyers benefit from improved selection; sellers must price accurately; investors should underwrite conservatively.

Muskoka

• Positioning: Lifestyle-driven market distinct from urban Northern Ontario, with longer holding periods required.
• Investor context: Rental demand remains firm, though expense control is increasingly important.
• Guidance: Buyers benefit from improved selection; sellers must price accurately; investors should underwrite conservatively.

Outlook: Early 2026

Market conditions are expected to improve gradually through the first half of 2026. Interest-rate stability supports confidence, but outcomes will continue to be driven by fundamentals rather than speculation.

Data Sources & Notes

• Canadian Real Estate Association (CREA) — December 2025 regional aggregates.
• Canada Mortgage and Housing Corporation (CMHC) — Rental Market Report.
• Metrics reflect regional aggregates; local sub-markets may vary.

If you want a personalized renewal, purchase, or investment analysis, just email This email address is being protected from spambots. You need JavaScript enabled to view it. with the subject line “Run My Numbers” and include your renewal date or target purchase price & down payment.

Thanks for reading!

Caleb O'Connor, CFP
Partner | Financial Planner | Mortgage & Lending Lead, Innova Wealth Partners
Mortgage Agent Level 1, HQ Mortgages Inc.

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This publication is for informational purposes only and shall not be construed to constitute any form of advice. The views expressed are those of the author alone. Opinions expressed are as of the date of this publication and are subject to change without notice and information has been compiled from sources believed to be reliable. This publication has been prepared for general circulation and without regard to the individual financial circumstances and objectives of persons who receive it. You should not act or rely on the information without seeking the advice of the appropriate professional.