Home sales edge higher across Canada in October

Canadian home sales saw a modest uptick in October, with activity edging up 0.9% month-over-month according to the Canadian Real Estate Association (CREA).

The increase marked the sixth monthly gain in the past seven months, signaling renewed momentum after a brief pause in September.

However, the market remained softer than a year ago, with actual sales down 4.3% from October 2024 and the national average sale price slipping 1.1% to $690,195.

CREA’s senior economist Shaun Cathcart said the latest figures suggest a market gradually regaining its footing.

“After a brief pause in September, home sales across Canada picked back up again in October, rejoining the trend in place since April,” Cathcart said.

“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.”

Supply remained tight, with new listings down 1.4% month-over-month. The sales-to-new listings ratio tightened to 52.2%, inching closer to the long-term average of 54.9%.

Inventory levels held steady at 4.4 months, the lowest since January, and below the long-term average of five months. At the end of October, 189,000 properties were listed for sale, up 7.2% from a year earlier but still in line with historical norms.

CREA chair Valérie Paquin pointed to signs of pent-up demand building ahead of the traditionally quieter winter season.

“As we head into the quiet winter season, we continue to see clues that underlying demand for housing is picking up steam,” Paquin said.

“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.”

Market watchers noted that the National Composite MLS Home Price Index edged up 0.2% month-over-month, though it remained down 3% year-over-year. That's the smallest annual decline since March.

The sales-to-new listings ratio and months of inventory both indicated a market hovering in balanced territory, with neither buyers nor sellers holding a decisive advantage.

While Canadian home sales in October remained below last year’s levels, steady monthly gains and tightening supply suggest a market poised for increased activity in 2026, provided economic uncertainty don’t derail the recovery.

CMP

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