Canada’s housing market continued its slow but steady recovery in October, according to the latest data from the Canadian Real Estate Association (CREA). National home sales posted another monthly increase, extending a trend of gradual improvement. Although activity remains below last year’s levels, key indicators point to a market that’s edging closer to balance.
Sales continue their upward climb
Home sales recorded through Canadian MLS® Systems rose 0.9% from September to October, marking the sixth monthly gain in seven months. Overall sales were still 4.3% below October 2024.
“After a brief pause in September, home sales across Canada picked back up again in October, rejoining the trend in place since April,” said Shaun Cathcart, CREA’s Senior Economist, in the monthly report. “With interest rates now almost in stimulative territory, housing markets are expected to continue to become more active heading into 2026, although this is likely to be tempered by ongoing economic uncertainty.”
Less new supply tightens market conditions
New listings slipped 1.4% month over month in October as sellers took a slight step back. Combined with rising sales, this shift nudged the sales-to-new listings ratio up to 52.2% from 51% in September. While still below the long-term average of 54.9%, the ratio remains firmly within balanced market territory.
Active listings totalled 189,000 at the end of October, up 7.2% from a year earlier and aligned with long-term norms for the month. Months of inventory held steady at 4.4 – unchanged since July and the lowest level since January. Historically, a balanced market features roughly five months of inventory.
Home prices show subtle signs of stabilization
The MLS® Home Price Index (HPI) posted a 0.2% month-over-month increase in October. On an annual basis, the index remained 3% below last year, though this marks the smallest year-over-year decline since March and suggests pricing may be finding its footing.
The actual (not seasonally adjusted) national average sale price came in at $690,195, a 1.1% decrease compared to October 2024.
“As we head into the quiet winter season, we continue to see clues that underlying demand for housing is picking up steam,” said Valérie Paquin, CREA Chair, in the report. “All eyes will be on next year’s spring market to see if all that pent-up demand will finally come off the sidelines in a big way.”