Canadian home sales hold steady in November
Aditi Gupta, Content Specialist
Canada’s housing market showed little change in November, with national home sales edging down 0.6% month over month, according to the Canadian Real Estate Association (CREA). The modest decline reflects a pause after months of stabilization, rather than a broader slowdown. On a year-over-year basis, sales were down about 11%, even as monthly activity has largely held steady since the summer.
CREA’s Senior Economist Shaun Cathcart described the current environment as a “holding pattern” heading into 2026, noting that some sellers made price concessions in November to get deals done before year-end. At the same time, he pointed to the Bank of Canada’s recent messaging that interest rates are now about as good as they’re likely to get, a signal that could encourage more fixed-rate borrowers back into the market next year.
Sales ease slightly, but market remains balanced
While national home sales declined on both a monthly and annual basis, supply also eased, limiting any meaningful shift in market balance. New listings fell 1.6% from October, helping keep conditions balanced. As a result, the national sales-to-new-listings ratio edged up to 52.7%, compared to 52.2% in October.
A ratio in the low-50% range is generally consistent with balanced market conditions. While this reading sits slightly below the long-term average of 54.9%, it suggests that neither buyers nor sellers currently hold a clear advantage. Instead, the November data reinforces the view that the housing market is holding steady as it heads into the final weeks of the year.
Inventory holds steady near long-term averages
Housing supply conditions showed little change in November. The number of months of inventory held at 4.4 months on a national basis, essentially unchanged from July through October.
For context, the long-term national average sits at five months of inventory. Levels below 3.6 months are typically associated with seller’s market conditions, while readings above 6.4 months tend to favour buyers. November’s reading remains comfortably within balanced territory, reinforcing the view that market conditions have stabilized rather than tightened or loosened meaningfully.
Home prices soften as sellers make concessions
Home prices edged lower in November, suggesting some sellers adjusted expectations to close deals before year-end. The MLS® Home Price Index (HPI) fell 0.4% month over month, pointing to modest price concessions after several months of relative stability.
On an annual basis, the non-seasonally adjusted MLS® HPI was down 3.7% compared to November 2024, while the national average sale price fell 2% year over year to $682,219. These declines indicate that while demand has not disappeared, buyers continue to have some leverage when it comes to pricing.
What this means heading into 2026
November’s data points to a housing market that is stable but cautious as Canada heads toward 2026. Sales have cooled from their mid-year momentum, inventory remains balanced, and prices are softening modestly as sellers adjust expectations. Together, these trends suggest the market is pausing rather than losing its footing.
For buyers, current conditions remain relatively favourable. Prices are still below last year’s levels, selection is reasonable, and borrowing costs appear to be near their likely low point for this cycle. That combination gives buyers more flexibility and negotiating room than they’ve had in recent years, even as competition slowly begins to return.
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Aditi Gupta, Content Specialist
Aditi Gupta is a content specialist at Ratehub, with a focus on creating informative content about mortgages.