Annual home sales declined in October as CREA expects lower rates in 2026 to boost market
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The Canadian Real Estate Association says the number of changes to residential properties in October was down from a year earlier, as prices also fell.
There were 42,068 home sales nationwide last month, down 4.3 percent from October 2024.
But home sales rose 0.9 percent on a month-on-month basis, the sixth such increase in the last seven months.
“After a brief pause in September, home sales across Canada rose again in October, rejoining the trend from April,” CREA senior economist Shawn Cathcart said in a news release.
“With interest rates now almost in stim territory, housing markets are expected to remain more active through 2026, although this is likely to remain subdued due to ongoing economic uncertainty.”
TD economist Rishi Sondhi said the increase in month-over-month activity was driven by increased sales in BC, Alberta and Quebec, while sales declined in Ontario, Saskatchewan and Manitoba.
He said the “recovery narrative” dominating the Canadian housing discussion remains firmly intact.
“That said, sales levels are still relatively low, so we would be hard-pressed to call the recovery strong,” Sondhi said in a note.
“Going forward, we see continued sales growth, supported by pent-up demand and some improvement in job markets next year.”
Prices also decreased slightly
The actual national median sales price of a home sold in October was $690,195, down 1.1 percent from a year earlier.
CREA’s own home price index, which aims to represent sales of typical homes, rose 0.2 percent between September and October 2025, but was down three percent on a year-on-year basis.
“Canadian median home price growth should remain in positive territory against a backdrop of improving demand, supported by a tight supply/demand balance across much of the country,” Sondhi said.
“In contrast, the market balance is in favor of buyers in BC and Ontario, which should keep price growth in these markets in check for the next several months.”
New listings declined 1.4 percent month-on-month, the association said.
There were 189,000 properties listed for sale across Canada at the end of October, up 7.2 per cent from a year earlier.
