In October, the Canadian Real Estate Association reported a decrease in residential property transactions compared to the previous year, accompanied by a decline in prices. Home sales in the country totaled 42,068 last month, reflecting a 4.3% drop from October 2024. However, there was a 0.9% month-over-month increase in home sales, marking the sixth rise in the last seven months.
CREA’s senior economist Shaun Cathcart mentioned that after a brief slowdown in September, home sales in Canada rebounded in October, aligning with the trend since April. With interest rates nearing stimulative levels, the housing market is expected to remain active going into 2026, although economic uncertainties might temper the pace.
The boost in month-over-month sales activity was primarily driven by increases in British Columbia, Alberta, and Quebec, while sales declined in Ontario, Saskatchewan, and Manitoba. TD economist Rishi Sondhi affirmed that the recovery narrative in the Canadian housing sector remains solid, yet sales levels are relatively modest, indicating a cautious recovery outlook. Looking ahead, sales are anticipated to continue rising due to pent-up demand and anticipated improvements in job markets next year.
Regarding prices, the national average home sale price in October stood at $690,195, showing a 1.1% decrease from the previous year. CREA’s home price index, reflecting typical home sales, inched up by 0.2% between September and October 2025 but fell by three percent year-over-year. Sondhi highlighted that the growing demand backdrop is expected to maintain positive average home price growth, driven by tight supply-demand balances in most regions. However, B.C. and Ontario are projected to see restrained price growth due to favorable market conditions for buyers in the coming months.
The association reported a 1.4% decline in new listings compared to the previous month, with 189,000 properties listed for sale nationwide at the end of October, indicating a 7.2% increase from the previous year.