Sales activity dipped month over month, but marked strongest September since 2021
Canada’s housing market paused in September 2025, ending a five-month streak of rising sales, according to the latest figures from the Canadian Real Estate Association (CREA).
National home sales recorded through Canadian MLS® Systems slipped 1.7% from August. Despite the dip, it was still the busiest September since 2021. The slowdown was concentrated in Greater Vancouver, Calgary, Edmonton, Ottawa, and Montreal, offsetting sales gains in the Greater Toronto Area and Winnipeg.
“While there are more buyers in the market now than at almost any other point in the last four years, sales activity is still below average and well below where the long-term trend suggests it should be,” said Valérie Paquin, CREA’s Chair, in the report. “As such, we expect things will continue to steadily pick up going forward.”
New listings steady, market balance holds
New listings edged down 0.8% month over month. Because sales fell slightly more than new supply, the national sales-to-new listings ratio ticked down to 50.7% from 51.2% in August. That remains within the 45% to 65% range that signals a balanced market, though just under the long-term average of 54.9%.
At the end of September, 199,772 properties were listed for sale, 7.5% more than a year earlier and consistent with typical seasonal levels. The national months of inventory figure held firm at 4.4 months, the lowest since January.
Prices stabilize after spring rebound
National home prices showed little movement. The MLS® Home Price Index (HPI) edged down just 0.1% from August. After softness early in 2025, prices have largely stabilized since April. Year over year, the benchmark price was 3.4% lower, though this gap is expected to narrow through the remainder of 2025 as last year’s declines move out of the comparison window.
CREA revises outlook for 2025 and 2026
CREA has updated its housing market forecast, pointing to a resilient recovery supported by lower interest rates and pent-up demand.
Sales have been trending higher since March, suggesting demand was delayed by economic headwinds rather than diminished. While 2025 is expected to post slightly fewer sales than 2024, CREA projects a stronger rebound in 2026.
“While the trend of rising sales that began earlier this year took a breather in September, activity was still running at the highest level for that month since 2021, and that was true in July and August as well,” said Shaun Cathcart, CREA’s Senior Economist, in the report. “With three years of pent-up demand still out there and more normal interest rates finally here, the forecast continues to be for further upward momentum in home sales over the final quarter of the year and into 2026.”
2025 Outlook:
CREA expects 473,093 properties to change hands this year, a 1.1% dip from 2024. The national average price is forecast to decline 1.4% to $676,705. This reflects ongoing price softness in Ontario and British Columbia, which is balancing out moderate 4 to 8% price gains in most other provinces.
2026 Preview:
Sales are projected to rebound by 7.7% next year, reaching 509,479, the highest total since 2021 and just shy of the 10-year average. The national average price is expected to rise 3.2% to $698,622, continuing a trend of prices hovering near the $700,000 mark for six consecutive years.