Canadian home sales rise for the sixth time in October
Aditi Gupta, Content Specialist
Canada’s housing market regained momentum in October, with national home sales rising 0.9% from September. This marks the sixth monthly increase in the past seven months, extending the upward trajectory that began in early spring. While activity was still 4.3% lower than last October, it remained in line with the stronger market conditions seen throughout 2025.
The monthly improvement came as sales increased on a seasonally adjusted basis and buyers continued returning to the market despite fewer newly listed homes. “After a brief pause in September, home sales across Canada picked back up again in October,” said Shaun Cathcart, CREA’s Senior Economist. Demand has been gradually strengthening as borrowing costs fall and interest rates move closer to stimulative territory.
New listings declined, tightening market balance
New supply pulled back in October, with the number of newly listed homes falling 1.4% month-over-month. Combined with the uptick in sales, this shift pushed the national sales-to-new-listings ratio to 52.2%, up from 51% in September.
A ratio in the low-50% range is still considered balanced, but the dynamic of fewer new listings and rising sales suggests slightly more competition among buyers. Despite this tightening, the market isn’t showing signs of overheating; active listings were up 7.2% compared to last October and remain close to long-term seasonal norms.
CREA Chair Valérie Paquin noted that underlying demand continues to build beneath the surface as more buyers prepare for 2026. She added that all eyes are now on the upcoming spring season, when that pent-up demand could begin to move back into the market.
Inventory levels hold steady at 4.4 months
Canada’s housing inventory remained unchanged in October, holding at 4.4 months for the fourth straight month. This is the lowest level recorded since January 2025, reinforcing the gradual tightening seen throughout the fall.
For context, the long-term national average is five months of inventory. Anything below 3.6 months typically signals a seller’s market, while levels above 6.4 months lean toward buyer-friendly conditions. October’s reading sits comfortably in balanced territory, though the lack of movement suggests the market is slowly becoming more competitive.
Home prices edge up slightly but remain below 2024 levels
Home prices showed modest improvement in October, with the MLS® Home Price Index rising 0.2% month-over-month. On an annual basis, prices were still down 3%, but this marks the smallest year-over-year decline since March — another sign that the market may be finding its footing.
The national average sale price came in at $690,195, a 1.1% decrease compared to October 2024. While prices remain below last year’s levels, the combination of smaller annual declines and steady month-over-month gains suggests stabilization after several months of softening. These developments also point to early signs of firming as the market moves toward 2026.
What to watch heading into 2026
October’s numbers point to a market that’s stabilizing and gradually gaining strength as Canada moves toward 2026. For buyers, balanced conditions and easing borrowing costs create a more approachable landscape than what we’ve seen in the past few years. Prices remain slightly below last year’s levels, inventory is steady, and competition is increasing only gradually.
For sellers, steady demand and fewer new listings are helping support firmer pricing. Well-priced homes are attracting interest, and the six rises in sales since spring signal that more buyers are returning to the market. If underlying demand continues to build, sellers may see a more active environment by the time the spring season arrives.
Looking ahead, the key questions for 2026 revolve around how quickly pent-up demand will return and how the broader economy will influence buyer confidence. CREA expects activity to keep picking up, but notes that economic uncertainty may shape the pace of the recovery. All eyes are now on the spring market, which will offer the clearest read on whether strengthened demand translates into a meaningful increase in sales.
Aditi Gupta, Content Specialist
Aditi Gupta is a content specialist at Ratehub, with a focus on creating informative content about mortgages.