In October, the Canadian Real Estate Association reported a decrease in the number of residential property transactions compared to the previous year, accompanied by a decline in prices. Home sales totaled 42,068 nationwide last month, reflecting a 4.3% drop from October 2024. Despite this annual decline, there was a 0.9% increase in home sales from the previous month, which marked the sixth rise in the past 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 observed since April. With interest rates nearing stimulative levels, the housing market is anticipated to remain active as 2026 approaches, although uncertainties in the economy may temper this growth.
The surge in month-over-month sales was primarily driven by increased transactions in British Columbia, Alberta, and Quebec, while sales saw a decrease in Ontario, Saskatchewan, and Manitoba, according to TD economist Rishi Sondhi. Sondhi emphasized that while the recovery narrative in the Canadian housing market remains strong, sales levels are still relatively modest, indicating a cautious recovery outlook.
Regarding prices, the national average sale price of a home in October was $690,195, down by 1.1% from the previous year. CREA’s home price index, reflecting typical home sales, saw a 0.2% increase from September to October 2025 but exhibited a three percent decline year-over-year. Sondhi highlighted that the improving demand situation is likely to maintain positive growth in average home prices, supported by tight supply and demand dynamics in many regions.
However, the market conditions in British Columbia and Ontario favor buyers, potentially constraining price growth in these areas in the coming months. New listings were also down by 1.4% month-over-month, with a total of 189,000 properties listed for sale across Canada by the end of October, representing a 7.2% increase from the previous year.