Canada’s housing market experienced a noticeable downturn in October, with both residential sales and prices declining compared with the same month last year, according to newly released figures from the Canadian Real Estate Association (CREA). Despite this annual drop, a slight month-to-month improvement suggests that market conditions may be stabilising ahead of an anticipated rebound.
CREA reported that 42,068 homes were sold across the country in October 2025 — a 4.3% decrease from October 2024. The decline reflects continued economic caution among buyers, as higher living costs and lingering uncertainty have caused many households to delay major purchases.
Yet, on a more optimistic note, home sales rose by 0.9% month-over-month, continuing an upward trajectory that has persisted for six of the past seven months. Analysts suggest this trend may indicate that the market has passed its lowest point and is slowly regaining momentum.
The national average home price stood at $690,195, marking a 1.1% year-on-year decline. Price pressures remain uneven across the country, with more affordable regions seeing slight gains and major metropolitan areas facing mild declines due to higher inventory levels.
CREA’s senior economist, Shaun Cathcart, noted that with interest rates now “almost in stimulative territory”, the conditions are gradually becoming more favourable for buyers. He predicted that as Canada approaches 2026, markets are likely to see increased activity — albeit moderated by broader economic uncertainties, such as slower job growth and global financial volatility.
The number of new property listings contracted by 1.4% month-over-month, indicating growing caution among sellers. Despite this, the total number of properties listed for sale at the end of October reached 189,000, a 7.2% rise from the same period last year. This increase in available homes is expected to give buyers more choice, potentially easing competition in previously overheated markets.
Key Market Indicators — October 2025
| Indicator | October 2025 | Change vs. October 2024 | Month-over-Month Change |
|---|---|---|---|
| Residential Sales | 42,068 homes | ↓ 4.3% | ↑ 0.9% |
| National Average Sale Price | $690,195 | ↓ 1.1% | — |
| New Listings | — | — | ↓ 1.4% |
| Total Properties Listed | 189,000 | ↑ 7.2% | — |
As the housing sector continues adjusting to shifting interest rates and macroeconomic conditions, CREA maintains that Canada’s property market is slowly progressing toward a more balanced and sustainable footing.
This report by The Canadian Press was originally published on 17 November 2025.